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

Supply from SEZ to EOU treated as export; GST exemption applies if LUT and customs procedures are complied with.
Supply from a SEZ unit to an EOU is treated as an export by the SEZ and import by the EOU; where goods are for the EOU's authorised operations and covered by a Letter of Undertaking, the SEZ unit need not pay GST and LUT filing enables supply without GST. Procedural compliance requires filing a home-consumption bill of entry with supporting documents and submitting a re-warehousing certificate within the prescribed period to secure duty-free clearance; noncompliance may prompt recovery of customs duties with interest.