The correct answer is: C. Zero rated.
Supplies to SEZ are zero rated under GST. This means that the supplier of goods or services to SEZ units is not liable to pay GST on the supply, but the recipient of the supply is liable to pay IGST on the value of the supply.
The reason for zero rating supplies to SEZ is to promote exports. By zero rating supplies to SEZ, the government aims to make it easier for SEZ units to export their goods and services. This is because zero rating means that the SEZ units do not have to pay GST on the inputs that they use to produce their goods and services. This can help to reduce the cost of production for SEZ units and make their goods and services more competitive in the global market.
The following are the details of each option:
- Option A: Subject to IGST. This option is incorrect because supplies to SEZ are not subject to IGST.
- Option B: Subject to CGST plus SGST. This option is incorrect because supplies to SEZ are not subject to CGST or SGST.
- Option D: SGST plus CGST plus IGST. This option is incorrect because supplies to SEZ are not subject to SGST or CGST.
I hope this helps!