SEZ sale to EOU unit

[rajan gopal]

Dear Sir,

A SEZ unit executed BLUT (Bond cum LUT) with Development Commissioner. Now this unit has to sale goods to an EOU.So could clarify the below :-

1. Is this sale treated as DTA sale or export ?

2. IGST is applicable or not ?

Your quick reply will help us.

Thank you

Rajan

AI Summary

Deemed import: SEZ to EOU transfers treated as imports, attract customs duty and IGST and require bill of entry.
Supply from an SEZ unit to an EOU is treated as a deemed import: SEZs are outside India's customs territory so goods cleared to the domestic territory attract customs duty and Integrated GST as applicable; the transaction is treated as a DTA sale, the buyer or SEZ unit must file a bill of entry with SEZ Customs, and EOUs are treated as suppliers under GST while Basic Customs Duty exemption for EOUs may apply.