TaxTMI 
TaxTMI 
DEAR SIR,
TO AVOID BOND WE HAVE SUPPLIED TO SEZ UNIT WITH IGST WITHIN SAME STATE. WHETHER IT WILL BE CREATE ANY PROBLEM IN RETURN AND SALES IS ONLY YRLY 12 LACS APPX. PL HELP.
N K ROY
SUPPLY TO SEZ WITH IGST WITHIN SAME STATE ACCEPTABLE
06 Oct 2017 
6 Replies 
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Supply to SEZ treated as export: IGST applies within same state, with LUT or tax-paid refund routes available.
Supply to a Special Economic Zone unit or developer is treated as export and a zero-rated supply; such supplies are characterized as inter-state for IGST purposes even if within the same State. The supplier may either export under a bond or furnish a Letter of Undertaking to supply without payment of IGST and claim refund of unutilised input tax credit, or pay IGST on supply and claim refund of the tax paid. Rules prescribe eligibility, execution of LUT, and withdrawal or restoration of the facility when tax is not paid within the stipulated period. (AI Summary)
Supply to a Special Economic Zone unit or developer is treated as export and a zero-rated supply; such supplies are characterized as inter-state for IGST purposes even if within the same State. The supplier may either export under a bond or furnish a Letter of Undertaking to supply without payment of IGST and claim refund of unutilised input tax credit, or pay IGST on supply and claim refund of the tax paid. Rules prescribe eligibility, execution of LUT, and withdrawal or restoration of the facility when tax is not paid within the stipulated period. (AI Summary)