Applicability of LUT for sale between SEZ Units

[RAVI ANJANEYULU]

Do we need to take the LUT, from sales being made to one SEZ unit to other SEZ Unit. Please specify the relevant provisons in support of the above.

AI Summary

No Letter of Undertaking Needed for Sales Between SEZ Units Under GST Rules; Goods Considered Duty-Paid Exports. A user inquired whether a Letter of Undertaking (LUT) is necessary for sales between Special Economic Zone (SEZ) units under the Goods and Services Tax (GST) framework. The response clarified that an LUT or Bond is not required for such transactions. This is because goods transferred between SEZ units are considered exports and are treated as duty-paid, ensuring government revenue is safeguarded. Therefore, the requirement for an LUT or Bond does not apply when one SEZ unit clears goods to another SEZ unit.