Does opening an export business from Special Economic Zone is worth full?

Saw mainly three benefits

Duty-free import, but they have not mentioned it is for real import e.g. USA to India or from SEZ of India to non SEZ of India
100% Income Tax exemption on export income for SEZ units under Section 10AA, but Alternate Minimum Tax still applies so it is not 100% exemption.
There is no need for a license for import but licenses are renewed or taken annually or once in a 3 to 5 year so not a big benefit.
Supply of goods or services or both to a Special Economic Zone developer or a unit shall be treated as inter-State supply and shall be subject to levy of integrated tax

If I will conduct an export from a non-SEZ then also there will be No GST which comes under Zero Rated Supply and regarding Income tax that will be charged anyway using the AMT rule regardless if I conduct from SEZ or non-SEZ.

Regarding duty-free import, they have not mentioned that it is for real another country to India.

Please tell me if there are really worthful benefits or all show business

Hey Mack! Great question — setting up an export business in an SEZ can be advantageous, but it depends on your business model and goals. Let me break down the pros and cons based on your points:

1. Duty-free imports in SEZ

The duty-free benefit applies only when importing goods into the SEZ from outside India (i.e., genuine imports).
Also, when you bring goods from SEZ to Domestic Tariff Area (DTA, i.e., rest of India), customs duty and GST apply on those supplies.
So it’s not about duty-free imports from USA to India overall, but duty-free imports into SEZ units.

2. Income Tax exemption under Section 10AA

Yes, SEZ units get a tax holiday on profits from export business, but AMT (Alternate Minimum Tax) still applies — so not a full exemption in practice.
However, this can still be a significant tax saving for many businesses in the initial years.

3. No license needed for imports

This is definitely a convenience factor — no need for licenses like IEC renewal, etc., which can save time and effort.

4. Supply to SEZ units treated as inter-state supply (IGST applicable)

Yes, supplies from DTA to SEZ are treated as inter-state and attract IGST, but supply from SEZ to outside India is zero-rated under GST.

Additional points to consider:

Export from non-SEZ units also enjoys zero-rated supply status under GST with benefits like refund of input tax credit.
But SEZ units can procure goods without paying IGST or customs duty upfront, which can help cash flow.
SEZ setup involves compliance and operational overheads — maintaining separate premises, records, approvals, etc.

Summary — is it worth it?

If you are a large exporter planning significant import of inputs, SEZ can provide meaningful duty savings and tax incentives.
For smaller exporters, the benefits might be outweighed by compliance and operational costs.
The tax holiday is attractive but limited by AMT.
Zero-rated exports outside SEZ also get good GST benefits but no customs duty benefits on imports.