GST LUT for SEZ supplies — is it the same as exporting goods abroad?
Supplying goods or services to a unit or developer inside a Special Economic Zone (SEZ) is treated as a zero-rated supply under GST, just like exporting outside India. The same LUT you'd file to export internationally also covers SEZ supplies — there's no separate LUT or filing required specifically for SEZ transactions.
Why SEZ supplies get the same treatment as exports
Legally, an SEZ is treated as being outside the customs territory of India for many purposes, which is why supplying into one is zero-rated the same way a genuine cross-border export is, even though the goods or services never physically leave the country.
What changes in practice for an SEZ supplier
You'll typically need the SEZ unit's endorsement on your invoice or a similar acknowledgment confirming receipt of the goods or services, in addition to having your LUT filed — this is more about documentation for your own records and any future refund or audit than it is a separate GST filing requirement.
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Check my eligibility →One LUT covers all your zero-rated supplies
If your business supplies both a genuine overseas client and an SEZ unit in the same financial year, a single LUT filed at the start of the year covers both categories — you don't need to file separately for each type of zero-rated supply.
SEZ supplies versus deemed exports
It's worth distinguishing SEZ supplies from "deemed exports" under GST, a separate category covering specific domestic transactions that are notified as deemed exports without the goods actually leaving India or entering an SEZ. Deemed exports follow their own refund mechanism and aren't automatically covered by an LUT the way genuine SEZ or overseas exports are.
Do I need my SEZ customer's approval before treating a supply as zero-rated?
You'll generally want their acknowledgment or endorsement on the relevant documents for your own compliance trail, but the zero-rated treatment itself flows from the transaction being a supply to an SEZ unit or developer under the IGST Act, not from a separate approval from the customer.
This article is for general information only. For your specific situation, consult a practicing CA.
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