SALES BY SEZ UNIT TO DTA

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(Querist)
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08 September 2021 We are private limited company having 1 unit in SEZ and another unit in DTA, Whether GST Need to be charged in invoice raised by SEZ unit to DTA ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 September 2021 Yes, GST applicable on such supply.

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Lekhraj sood

Lekhraj sood (Expert)
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09 September 2021 Receiving unit has to file bill of entry and igst will be charged on BOE.

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Hemkumar

Hemkumar

(Querist)
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09 September 2021 sir if possible please share relevant sections of law applicable

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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23 July 2025 Here’s a clear explanation of the GST treatment for **sales by an SEZ unit to a DTA unit**, along with relevant legal references:

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### Scenario:

* You have **one unit in SEZ (Special Economic Zone)** and **another in DTA (Domestic Tariff Area)**.
* SEZ unit raises an invoice for supplies to the DTA unit.
* Question: **Is GST applicable? If yes, what kind?**

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### GST Treatment:

1. **Supply from SEZ to DTA is treated as an export of goods or services** under GST law.
2. **IGST (Integrated GST)** is applicable on supplies made by SEZ units to DTA units.
3. The DTA unit (recipient) is required to pay IGST on the goods or services received from the SEZ unit.

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### Relevant Law Sections:

* **Section 7(5) of the CGST Act, 2017:**
Defines the supply of goods or services to or by an SEZ developer or SEZ unit as a **supply of goods or services in the course of inter-State trade or commerce**, thus attracting IGST.

* **Section 5(3) of the IGST Act, 2017:**
IGST is applicable on supplies made in the course of inter-State trade or commerce, which includes supplies by SEZ units to DTA.

* **Notification No. 10/2019-IGST (Rate) dated 7 March 2019:**
Provides the exemption or concessional rate details for supplies from SEZ units to DTA.

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### Bill of Entry (BOE) & IGST:

* When goods physically move from SEZ to DTA, the receiving DTA unit has to file a **Bill of Entry (BOE)** with Customs.
* IGST is payable on the BOE at the time of clearance from SEZ to DTA.

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### Summary:

| **From** | **To** | **GST Applicable?** | **Type of GST** | **Other formalities** |
| -------- | -------- | ------------------- | --------------- | ---------------------------------------- |
| SEZ Unit | DTA Unit | Yes | IGST | Bill of Entry required, IGST paid on BOE |

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If you want, I can help you draft the exact invoice wording, or share links to official GST notifications and circulars. Would you like that?

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