Goods & Services Tax Issue 46

Educational Series

PD & PP : GST : 46/2017 August 02, 2017

Zero Rated Supplies
Zero rated supplies mean Nil rated supplies. It means that the items specified under zero rated supplies will be
taxable but nil rate of tax will be levied on those items.
Section 16 of the IGST Act, 2017 specifies zero rated supplies as supplies of goods or services or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
Zero Rated Supplies

Export
Supply to SEZ developer or SEZ Unit

Goods

Services

Input Tax Credit in Zero Rated Supplies.

Section 16(2) specifies that Input Tax Credit will be available on making zero rated supplies, notwithstanding that
such supply may be an exempt supply.
Refund Procedure
Subject to such conditions, safeguards and procedures, as may be prescribed:
can claim refund of
unutilised input tax
under Bond/ Letter of credit
Can supply Goods or undertaking , without
Services or both payment of integrated
tax
Registered
Person can claim refund of
such tax paid
on payment of
integrated tax

Disclaimer: This document developed for academic purposes only, is based on the information available in public domain. The Institute of Company Secretaries of India shall not be responsible for any loss or damage
caused due to any action taken on the basis of information contained in this document. Any person wishing to act on the basis of the information contained in this document should do so only after cross checking with
the original source.

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