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LUT not applied

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Sheetal Devaki

68 Points Posted on 18 February 2021

sir i failed to apply for LUT and suppplied to sez without collecting tax. Is there any solution?

Replies (2)

Quick Summary

This discussion addresses a common issue where goods are supplied to an SEZ without a Letter of Undertaking (LUT) being applied beforehand. The consensus is that since the LUT must be furnished before export without tax payment, the best course of action is to pay the applicable tax in cash and then file a refund claim. The SEZ unit itself is not liable for the IGST charged by the supplier for authorised operations, but the supplier must claim the refund.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 18 February 2021

No , as it's clearly prescribed in Rule 96A the LUT need to furnish before export without payment of tax .
It's better pay in cash & file DRC 03.

Note : Sez is not required pay the IGST amount charged by Supplier in his bill when it's procure for authorised operations by him.Its supplier who need to apply for refund under rule 89 of CGST Act.

So it's better you pay in cash and file DRC 03 or declare it in GSTR 3B as the case may be.