SEZ Unit - Bond/LUT under GST

[Janesh Singh]

We are a Recruitment Firm, having a client in SEZ, Pune. We placed an employee who is working in Pune office of that client. Client is demanding Bond/LUT to release the payment. We cant furnish LUT as not an exporter and turnover under 30Lacs. How to furnish a bond and value. Moreover is there any other way as we are not willing to work with SEZ unit because of this issue. Kindly help. Thanks!

AI Summary

Recruitment Firm Faces Bond/LUT Issue for SEZ Client; Must Use Bond + Bank Guarantee for GST Compliance A recruitment firm placed an employee at a client's SEZ office in Pune, but the client demands a Bond/LUT for payment release. The firm cannot furnish an LUT due to its turnover being under 30 lakh and not being an exporter. Responses suggest that while the supplier is not typically required to furnish a Bond/LUT, supplying to an SEZ makes them an exporter, necessitating compliance. The firm can use the Bond + Bank Guarantee method. An agreement with the SEZ is essential for GST exemption or refund, emphasizing the need for a contract to secure both parties' interests.