Supply to SEZ

[Kaustubh Karandikar]

XYZ is having a ‘Sweets and Namkeen’ shop. They supply these items to the SEZ unit either by 1) delivering these items to SEZ unit by their own tempo or 2) a representative of SEZ unit is coming to the shop and personally collecting the items. Under both the situations, the invoice is issued by XYZ in the name and address of the SEZ unit. Can XYZ supply these items to SEZ unit without payment of GST under LUT under both the situations?

AI Summary

XYZ Shop Queries GST Exemption on Supplies to SEZ Under LUT; Concerns Over Proving Business Use and Tax Obligations XYZ, a sweets and namkeen shop, inquires about supplying goods to a Special Economic Zone (SEZ) unit without paying GST under a Letter of Undertaking (LUT). The shop delivers goods directly or has them collected by SEZ representatives, issuing invoices in the SEZ's name. One respondent questions how XYZ can prove the goods are used for business purposes, which is necessary for GST exemption. Another cites a ruling indicating such supplies do not qualify as zero-rated. A third response suggests that GST exemptions apply only to authorized uses with export obligations, implying XYZ must pay applicable taxes.