SUPPLY TO SEZ WITHOUT PAYMENT OF TAX

Hello Seniors,
Need your guidance 

Do we need to ask for any certificate from a Client situated in SEZ before supplying him as "SEZ without payment of tax"

We already have LUT

My main concern is whether GST officer can argue that u have not obtained any Certificate from your SEZ client because you are supplying to them without payment of tax?

Replies (6)
Quick Summary
This discussion explores the requirements for supplying goods or services to Special Economic Zones (SEZs) without upfront tax payment, particularly when using an LUT (Letter of Undertaking). A key concern raised is whether a certificate from the SEZ client is necessary to avoid potential disputes with GST officers. The conversation also touches upon the importance of ensuring supplies are for authorised operations within the SEZ, especially for services like SaaS, and the challenges in proving this.

Yes you can only supply without tax to sez for authorised operations
Sir, how can I know the list of authorized operations

What is the nature of supply that you are making to the SEZ?

Sir we are in the business of providing SAAS services to our clients by charging them monthly fees for it. We provide HRMS services to our clients.

In that case, how do you ensure that the cost incurred is only for the SEZ unit and not the DTA unit.

Very difficult to prove SaaS services to be used for authorised operations.

Pay taxes on your supplies to be on the safe side

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details