A company made supplies to a SEZ unit. However, the LUT for FY 2021–22 was filed after the said supply was made. Additionally, the company has not received the endorsement from the supplier. Further, these supplies were reported in GSTR-1, but not reported in GSTR-3B.
1. Is there any circular, clarification, or case law that supports the position where LUT was filed belatedly but the supplies were still made to SEZ for authorized operations?
2. Can it still qualify as a zero-rated supply despite the belated LUT and missing endorsement?
Delayed LUT Filing Does Not Affect Zero-Rated Status for SEZ Supplies Under GST Rules A company supplied goods to a Special Economic Zone (SEZ) unit but filed the Letter of Undertaking (LUT) for the relevant financial year after the supply date and lacked supplier endorsement. Although these supplies were reported in GSTR-1, they were omitted from GSTR-3B. Clarifications indicate that belated LUT filing is considered procedural and does not negate the zero-rated supply status. Relevant circulars, including Circular No. 125/44/2019-GST and subsequent amendments, support this position, affirming that export benefits remain applicable despite delayed LUT submission and missing endorsement, provided the supplies are for authorized SEZ operations. (AI Summary)
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