India SEZ - Issuance of Endorsement certificates for Credit Notes

Under Indian Goods and Services tax (GST) law, customers operating within Special Economic Zones (SEZs) are eligible for GST exemption benefits on supplies received from vendors. In October 2023, Government of India introduced new compliance requirements, mandating that SEZ customers seeking GST-exempt invoices must furnish endorsement certificates issued by SEZ authorities to their suppliers. This requirement is also aligned with public notices issued by the respective Development Commissioners and is applicable to you as well. This advisory is specifically regarding issuance of Endorsement certificates for Credit notes.

It is to be noted that the endorsements required are as mandated under the GST law, wherein taxable supplies made to SEZ units through prescribed documents (i.e. tax invoice, credit note, debit note etc.), can be provided a “Zero Rating” benefit, provided endorsements are received for all such documents issued to SEZ units. There is no specific exemption provided under the law for non-issuance of endorsements for credit notes. Accordingly, it is abundantly clear that the GST law requires issuance of endorsements for all documents issued thereunder including credit notes.

Following points are also to be noted which concern the practical aspects around issuance of endorsements for credit notes :

1. The SEZ Online documents (Build version 2.69) clearly specifies that details of invoice to be uploaded on DTA Service Procurement Form (DSPF) also includes Credit Notes.
2. Online DSPF utility and the excel upload file is fully equipped for generating endorsements for credit notes.
3. We have already received endorsements for credit notes from many of our customers. This will not have any impact on our customers.

We request your cooperation in following the above steps to ensure uninterrupted GST exemption on your transactions. If you have any questions or need assistance, please reach out to your Maersk Customer Experience Partner.

We appreciate your understanding and continued support to help us serve you better.