SALES BY SEZ UNIT TO DTA
This query is : Resolved
Quick Summary
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 ??
08 September 2021
Yes, GST applicable on such supply.
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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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09 September 2021
sir if possible please share relevant sections of law applicable
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:
---
### 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?**
---
### 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.
---
### 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.
---
### 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.
---
### Summary:
| **From** | **To** | **GST Applicable?** | **Type of GST** | **Other formalities** |
| -------- | -------- | ------------------- | --------------- | ---------------------------------------- |
| SEZ Unit | DTA Unit | Yes | IGST | Bill of Entry required, IGST paid on BOE |
---
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?
---
### 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?**
---
### 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.
---
### 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.
---
### 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.
---
### Summary:
| **From** | **To** | **GST Applicable?** | **Type of GST** | **Other formalities** |
| -------- | -------- | ------------------- | --------------- | ---------------------------------------- |
| SEZ Unit | DTA Unit | Yes | IGST | Bill of Entry required, IGST paid on BOE |
---
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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