https://www.taxtmi.com/article/detailed?id=7524 Section 16 of the IGST Act treats supplies to SEZs as zero rated, allowing input tax credit and refunds; suppliers may either furnish a Letter of Undertaking or bond to supply at zero rate or pay IGST and claim refund. Notification 16/2017 prescribes LUT eligibility and formalities and a bond with bank guarantee applies where LUT conditions are unmet. In practice many suppliers charge IGST rather than follow LUT/bond procedures, forcing SEZ units to pay IGST and await refund contingent on supplier compliance. en-us Tue, 25 Jul 2017 07:48:30 +0530 Tue, 25 Jul 2017 07:48:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=7524 Section 16 of the IGST Act treats supplies to SEZs as zero rated, allowing input tax credit and refunds; suppliers may either furnish a Letter of Undertaking or bond to supply at zero rate or pay IGST and claim refund. Notification 16/2017 prescribes LUT eligibility and formalities and a bond with bank guarantee applies where LUT conditions are unmet. In practice many suppliers charge IGST rather than follow LUT/bond procedures, forcing SEZ units to pay IGST and await refund contingent on supplier compliance. Articles Goods and Services Tax - GST Tue, 25 Jul 2017 07:48:30 +0530 https://www.taxtmi.com/article/detailed?id=7524