Come GST, things look very different. As per the registration rules under GST, a proviso has been created to Rule 1 mandating a SEZ Unit/ Developer of SEZ units is to take a separate registration under GST.
Units in Special economic zone (SEZ) have always been at the forefront of benefits and exemptions by Government. Under current scheme of things, SEZ Unit/ Developer of SEZ units is required to meet certain conditions and undertake specified compliance flowing through service tax law, VAT laws, Excise law etc to avail benefits/ exemptions. However, never ever SEZ Unit has been required to take a mandatory separate registration under any indirect tax law.
The proviso reads as:
On in depth reading, the provision creates ambiguity by sprouting following possible interpretations:
1. Each SEZ unit will be required to take separate registration
2. All SEZ units covered under one Zone will be required to take one common GST registration
3. All SEZ units in one particular state will be required to take one common GST registration