TaxTMI 
TaxTMI 
Can a unit in DTA supply goods/services to a SEZ unit under a LUT (without any bank guarantee) without paying GST? Or it has to mandatorily supply under a bond (with bank guarantee)
Please quote the relevant notification/law, if possible.
GST on supply to a SEZ unit by a unit in DTA
14 Jan 2020 
2 Replies 
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Zero-rated supply to SEZ units permits DTA suppliers to export under LUT, subject to bond or LUT procedural conditions.
Supply from a Domestic Tariff Area unit to a Special Economic Zone unit is a zero-rated supply that may be effected without payment of integrated tax if the supplier furnishes, prior to export, a Letter of Undertaking or a bond in the prescribed form, with the procedural timelines and liabilities applying mutatis mutandis to SEZ supplies. (AI Summary)
Supply from a Domestic Tariff Area unit to a Special Economic Zone unit is a zero-rated supply that may be effected without payment of integrated tax if the supplier furnishes, prior to export, a Letter of Undertaking or a bond in the prescribed form, with the procedural timelines and liabilities applying mutatis mutandis to SEZ supplies. (AI Summary)