GST refunds on SEZ supplies: getting the paperwork right

Supplies to a Special Economic Zone (SEZ) unit or developer are treated as zero-rated under the IGST Act. A supplier can either pay IGST and claim a refund of the tax paid, or supply under a Letter of Undertaking (LUT) and claim a refund of unutilised input tax credit.

Where refunds stall

• Endorsement: the refund requires proof that the supply was received for authorised operations, endorsed by the specified officer of the SEZ.
• Matching: invoice details must reconcile across GSTR-1, GSTR-3B and the refund application (RFD-01).
• Timing: the two-year limitation runs from the relevant date — do not let claims age out.

Practical checklist

1. File the LUT before the financial year begins.
2. Keep endorsed copies of tax invoices and the SEZ authorisation.
3. Reconcile ITC monthly so the refund computation is ready when you file.

Sample alert for template demonstration. Confirm current procedure on the GST portal before filing.