A special economic zone (SEZ) is a designated area inside the country with simplified tax and regulatory requirements.
A SEZ located within the country, on the other hand, is deemed foreign territory.
SEZ transactions are treated as exports and imports, just like any other foreign business.
Any products or services delivered within the SEZ or from a SEZ to any other entity are deemed interstate supplies and are subject to IGST.
Any products or services provided to SEZ, on the other hand, will be regarded a zero-rated supplier. As a result, any supplies into the SEZ are GST-free.
These items will be considered exports.
