sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
 Government likely to withdraw tax notice on free banking services
 Senior Citizens Savings Scheme Rules, 2004
 How salaried individuals can avail full potential of I-T benefits
 The Central Board of Direct Taxes unveiled new Income Tax Return forms for assessment year 2018-19 on 5 April. Although the manner of filing returns remains the same as compared to last year, certain changes have been incorporated in the new ITR forms.
 Income Tax efiling: Must-do steps to file your IT return for FY 2017-18 on time till you get Form 16
 What are the tax filing deadlines for financial year 2017-18?
 How income tax department can penalise you for under-reporting, misreporting income
 Start your tax planning right now
 Government confident of meeting fiscal deficit, tax revenue targets
 Clarification with respect to the E-way Bill System
 Here is how you can save on taxes

How to file LUT/Bond for SEZ units under GST
September, 28th 2017

On receiving large number of representations from exporter, the Central Board of Excise and Customs (CBEC) in order to grant significant relief to the exporter who were facing lot of difficulties under GST regime, had issued circular just to clarify the issues relating to furnishing of bonds/letter of undertaking (LUT) for exports without payment of IGST.

These clarifications brought huge relief for the exporters with respect to export without payment of IGST

Export or Import to SEZ unit is an interstate supply of goods or service and hence they are mainly covered under IGST act.

IGST Act provides for special treatment of Special Economic Zone Units just as export promotion strategy and supply of goods and services to this unit is treated as zero-rated supply.

What is SEZ?

SEZ is a specially designated area which is duty-free for the purpose of promotion of goods and services to enhance economic activities, promotion of export and investment, development of infrastructure, the creation of employment opportunities and so on.

How to supply goods or services to SEZ units

Supply of goods and services to SEZ Unit is considered as zero-rated it can be made in the manner as provided below:

  • Supply under bond or LUT without payment of tax.
  • Supply with payment of tax and claiming refund thereafter.

In this article, we shall only discuss the case I, i.e. supply to SEZ under bond or LUT made without payment of tax.

Supply to SEZ under bond or LUT are also called Zero-rated supplies

Supply to SEZ units under bond or LUT is made in such cases where goods or services are supplied without payment of IGST, it is therefore also called “Zero-rated supplies.

One needs to file certain documents with the department to supply the goods and services to the SEZ units. The list of documents is as under:

  • You need to deliver LUT on stamp paper / while in case of Bonds it can be provided on non-judicial stamp paper both should be signed by the appropriate authority of the organization.
  • In both LUT / Bond Fill appropriately Form  GST-RFD-11 on the letter head of the organization
  • In both cases of LUT / Bond, you need to produce authority letter of your organization for furnishing with the department.
  • Additional requirement to be fulfilled in case Bond that is the supplier would be required to give Bank guarantee of maximum 15% of the bond amount which is needed to be given to the department
  • In both the case other supporting documents as may be prescribed and asked by the department also expected to be furnished.

Submit document with the department

Further, once all the document is prepared then you would be required to visit the department for submission and verification, you need to ensure with appropriate authority with which you are submitting the required documents so that it could be processed smoothly without any hassles and complexity.

Assignment of the officer’s jurisdiction is entirely depending upon the principal place of business of the exporter.

Receipt of Acceptance letter

Once you submit the above-said document and LUT / Bond with appropriate authority and the respective officer verify and check the credentials of the information submitted as per the document.

The authority will issue acknowledgement as a token of compliance in the form letter after getting their signature on the documents within 3 days.


We have tried to cover almost all the relevant point in this article further if you need further guidance and assistance and have any doubt or query related to GST feel free to write us on

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions