Can a registered person supply goods to SEZ without payment of tax, means zero rated? Then what is process? Is LUT same for both export and sez?

Reply—As per Section 16 of IGST Act,  “Zero rated supply” means any of the following supplies of goods or services or both, namely:–

(a) export of goods or services or both; or

(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:––

(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or

(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.

Same LUT can be used for export of goods out of India and supply made to a SEZ unit

The following conditions must be met for being eligible to file the refund application in form GST RFD-01 to claim refund on account of supplies made to SEZ unit / SEZ developer (without payment of tax):

1. The Taxpayer is registered with GST Portal and holds an active GSTIN during the period for which refund is being applied for.

2. Form GSTR-1 and Form GSTR-3B must have been filed for all the tax periods for which refund is intended to be claimed.

3. The taxpayer has made supplies to SEZ unit/ SEZ Developer.