Supply made to SEZ but LUT not file

[CASUNIL 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.

AI Summary

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.