SEZ supplies

[Madhavan iyengar]

A unit is located in SEZ and has a GST registration

Piror to GST it has a BLUT issued by the Development commissioner of the SEZ in April 17

When the unit has enquired with the GST authority whether the Blut is valid or fresh LUT is required to be taken from the GST authority

The GST dept has mentioned that the BLUT is valid

Issue is the above correct stand or the SEZ unit should obtain a separate LUT

Please confirm

[KASTURI SETHI]

Separate LUT is required. Otherwise also afresh LUT is required to be filed and got accepted in every financial year (in April). SEZ unit is also controlled by the IGST Act (GST authorities). Bond accepted by Development Commissioner falls under the Ministry of Commerce whereas GST authorities falls under Ministry of Finance. Hence separate LUT. Language is different.

[DR.MARIAPPAN GOVINDARAJAN]

I concur the view of Shri Sethi.

AI Summary

LUT requirement: SEZ units must file a separate LUT with GST authorities annually; DC bond is not sufficient.
SEZ units cannot rely on a pre GST bond or BLUT issued by the Development Commissioner as substitute GST compliance; under the IGST regime a separate Letter of Undertaking must be furnished to and accepted by GST authorities, and a fresh LUT is required to be filed and accepted for each financial year.