Supply made to SEZ but LUT not file

[Sneha Bhansali]

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?

 

[KASTURI SETHI]

Q. No. 1 Answer is YES. Circular No. 125/44/2019-GST, dated 18-11-2019. Para No.44 refers. This circular has been amended vide the undermentioned circulars:-

197/09/2023-GST dated 17-07-2023: GST Refund - Refund of accumulated ITC under CGST Section 54(3) undertaking in FORM RFD-01, manner of calculation of adjusted Total Turnover and admissibility of refund where an exporter applied for refund subsequent to compliance – Clarification.

3/2022-GST (Instruction) dated 14-06-2022: Refund claims - Sanction, post-audit and Review of refunds - Instruction/Guidelines

147/03/2021-GST dated 12-03-2021: GST Refund - Refund claim by recipient of deemed export supply, zero-rated supplies has been wrongly declared and calculation of adjusted total turnover under CGST Rule 89(4) – Clarifications.

135/05/2020-GST dated 31-03-2020: GST Refund related issues – Clarification.

134/04/2020-GST dated 23-03-2020: Companies under Insolvency and Bankruptcy Code, 2016 - Clarification in respect of issues under GST law.

[Shilpi Jain]

Yes. Belated filing of LUT would max be a procedural aspect and should not deny the export benefits.

[Shrivalli]

Dear Experts,

I would appreciate your guidance on the following GST matter concerning exports of services.

Background:

• I exported services continuously from April to July during the current financial year.
• At the time of making these exports, I had not yet applied for a Letter of Undertaking (LUT).
• I subsequently applied for the LUT in the month of July, approximately three months after the commencement of exports.
• I have also not filed my GST returns (GSTR-1 and GSTR-3B) from April onwards. I am now planning to file all the pending returns.

My queries are as follows:

1. Can I now file my pending GSTR-1 and GSTR-3B returns by treating the supplies made from April to July as zero-rated exports under the LUT?
2. Since the LUT was applied for only in July, will there be any leg

AI Summary

Belated LUT filing may remain procedural, allowing eligible SEZ supplies and exports to be reported as zero-rated supplies.
Belated filing of a Letter of Undertaking is described as a procedural matter that should not by itself deny zero-rated or export-related benefits. The discussion addresses supplies to an SEZ unit for authorised operations and exports of services made before LUT application, including pending GST return filings. It refers to a GST circular and related refund clarifications in support of treating such supplies as zero-rated under a subsequently filed LUT.