SEZ unit not required to pay IGST on specific services from DTAs: AAR

Units in the special economic zones (SEZs) may not be required to pay the integrated goods and services tax (IGST) on specified services taken from domestic tariff area (DTA) on reverse charge mechanism, if a ruling by the Gujarat-based Authority for Advance Rulings (AAR) sets a precedent. For availing such an exemption, the units will have to furnish a letter of undertaking (LUT) or a bond. These…