Sale from a SEZ unit to EOU

[Prerna Birla]

Hi,

A SEZ units imports goods from China and pays no GST due to exemption of GST on such transaction. Then such SEZ unit (a registered warehouse) sells such goods to EOU unit.

- Whether SEZ unit is liable to pay GST for such transaction ?

- Whether LUT filing is important for such case?

AI Summary

SEZ Goods Sold to EOU Exempt from GST with LUT; EOU Must File Bill of Entry for Duty Exemption. A Special Economic Zone (SEZ) unit imports goods from China without paying GST due to exemptions and sells them to an Export Oriented Unit (EOU). The SEZ is not liable to pay GST on this transaction if the goods are covered under a Letter of Undertaking (LUT) for authorized operations of the EOU. The supply from SEZ to EOU is considered an export, and the EOU must file a bill of entry for home consumption. A re-warehousing certificate must be submitted within 45 days to avoid customs duty recovery. Delays in LUT filing are condonable, and duty exemptions apply under Customs Notification No. 52/2003.