Procedure for endorsement of invoices for receipts of goods or services to be followed by SEZ developers/ units

This is to update you on procedure prescribed by the Office of the Development Commissioner, Karnataka Sub Zone (the “Office”) to be followed by Special Economic Zone (“SEZ”) developers/ units for endorsement of invoices across Karnataka SEZ Zone. In this regard, please find below the summary of instructions:

·                Background:

–        As per Rule 89 of CGST Rules, 2017, the invoices for supply of goods or services or both by the supplier to SEZ developers/ units are required to endorsed by Specified Officer in the SEZ for the purpose of claiming refund by such supplier.

–        The procedure for endorsement of invoices in respect of goods has been prescribed under Rule 30(4) of SEZ Rules, 2006. However, there is no prescribed procedure to be followed for endorsement of invoices in respect of services.

–        In order to ascertain the receipt of services, different sets of documents/ details are being called for by the Specified Officers.

–        Therefore, the Office has prescribed the procedure to bring uniformity for endorsement of invoices in respect of services.

·                Prescribed procedure for services:

–        Original invoice to be produced before Specified Officer along with request letter for the purpose of endorsement.

–        The invoice should have endorsement by the authorized signatory to the effect that “the service is received and utilized for the authorized operations of the SEZ”

–        SEZ developer/ unit to produce relevant ledger to prove that invoice for supply of service is duly accounted in books of accounts

o   In case of any change in accounting of invoice, SEZ developer/ unit to inform the Specified Officer

–        Details of payments may not be insisted upon except in rare cases as same is verified by GST officers

o   If required, then SEZ developer/ unit to furnish the same in writing

–         The Specified Officer to endorse only one copy of the invoice for which SEZ units may approach the respective Specified Officers

·                Prescribed procedure for goods [Rule 30(4) of SEZ Rules, 2006]:

–        The invoices containing the seal of the security gate entry can be produced before authorized officer for endorsement after entry of particulars on online portal “sezonline-ndml.co.in”