Avalara > Blog > Goods and Services Tax > Commerce Ministry clarifies Issues relating to SEZ and EOUs

Commerce Ministry clarifies Issues relating to SEZ and EOUs

  • Jun 5, 2020 | Divita S Gupta

The Ministry of Commerce has issued a circular clarifying all issues pertaining to Special Economic Zones (SEZs) and Export Oriented Units (EOUs) raised by Stakeholders during the COVID-19 lockdown. The Director-General of Export Promotion has clarified the following issues:

  • Pending GST refunds for DTA suppliers
    • The DGEP has asked for the list of such ITC refunds that have not been sanctioned even after 6 months of filing for necessary action.
  • Extension of timelines for e-way bills
    • This issue has already been addressed by the CBIC and the validity of an e-way bill which expires during the period between March 20 to April 15 will be extended till April 30, 2020
  • GST imposed on foreign currency conversion charges
    • Proposal for reducing or eliminating GST imposed on foreign currency conversion charges has been flagged for examination.
  • EOUs maybe granted ab initio exemption from payment of GST
    • No requirement of granting ab initio payment for granting GST on domestic supply by EOUs.
  • Advance loans from commercial banks as an alternative for refunds under GST, Income Tax that is pending disbursal from Government
    • No basis has been provided for this proposal of Government paying the interest against loan advanced by Banks in lieu of refunds of GST, Income Tax, etc

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

Get direct help with your questions about GST software


Contact us

Latest GST News