[amp_mcq option1=”By SEZ unit in India” option2=”To SEZ unit in India” option3=”Both A and B above” option4=”None of the above” correct=”option3″]
The correct answer is: C. Both A and B above
Zero-rated supply is a supply of goods or services that is not subject to GST. Supplies made by SEZ units in India and supplies made to SEZ units in India are both zero-rated supplies.
A SEZ unit is a unit that is located in a Special Economic Zone (SEZ). SEZs are areas that are designated by the government of India as being free from certain taxes and duties. This includes GST. As a result, supplies made by SEZ units in India are not subject to GST.
A supply made to a SEZ unit is also a zero-rated supply. This is because the goods or services that are supplied to a SEZ unit are ultimately used in the SEZ, which is a tax-free zone. As a result, the GST on these supplies is not payable.
It is important to note that not all supplies made to SEZ units are zero-rated supplies. For example, supplies of goods or services that are used for personal consumption by the employees of a SEZ unit are not zero-rated supplies.
I hope this explanation is helpful. Please let me know if you have any further questions.