Answer

1. F

   Facts

   Supplies to an SEZ unit or developer for authorised operations are zero-rated under Sec 16(1)(b) of the IGST Act. You can supply under LUT without IGST, or pay IGST and claim refund.

2. P

   Provisions and law

   • Sec 16(1), IGST Act 2017Export of goods or services and supplies to SEZ units or developers for authorised operations are zero-rated
   • Sec 16(3), IGST Act 2017Zero-rated supply can be made under bond or LUT without paying IGST, with refund of unused ITC
   • Rule 89, CGST Rules 2017Refund for supplies to SEZ needs the SEZ officer's endorsement of receipt for authorised operations
3. A

   Analysis

   Ask the SEZ unit for a letter confirming the supply is for authorised operations. Use the SEZ endorsement on the invoice. For refund later, you will need proof that the goods were admitted into the SEZ or the services received, endorsed by the SEZ officer.

4. C

   Conclusion

   1. 1Get the SEZ unit's authorised operations letter.
   2. 2Raise the invoice with the SEZ endorsement under LUT.
   3. 3Report it in GSTR-1 as SEZ supply without payment.
   4. 4Collect the SEZ officer's endorsement for refund.

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