LUT certificate is mandatory for licences

[raj seeds]

hi,

we are planing to buy some online licenses from vendor when we ask vendor for LUT certificate availability he says below ..

GST department we come to know that LUT is not mandatory in our transaction because we supply software having SAC code 997331 and LUT is applicable where physical goods supply in SEZ zone.

can some body help me on this.

AI Summary

Business Seeks Clarity on LUT Requirement for Online Software License Purchases; GST Circular Referenced for Details A business is seeking clarity on whether a Letter of Undertaking (LUT) certificate is mandatory when purchasing online licenses from a vendor. The vendor claims LUT is not required as the transaction involves software with SAC code 997331, not physical goods in an SEZ zone. A respondent clarifies that LUT is mandatory for both physical and non-physical goods exports to safeguard revenue, suggesting that without an LUT or Bond, the only option is to pay tax and claim a refund. The respondent refers to a specific GST circular for further details.