Section 16 of IGST Act,2017 has a provision of Zero rated supply under GST for supply of goods and services to SEZ units - needs explicit clarity whether this also covers for supply of goods and services by one SEZ unit to another SEZ unit. E.g. Exchange levying fees and penalty to its trading members who are also IFSC units ?
Yes, supply of goods and services from one SEZ unit to another SEZ unit would be considered zero rated supplies under Section 16 of IGST Act,2017, which deals with zero rated supplies. Section 16 provides for zero rating of "supply of goods or services or both to a SEZ developer or a SEZ unit. As supply in the question is to a SEZ developer or a SEZ unit", it is covered under Section 16.
