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Prerequisites to Using TallyPrime for GST Purpose (Regular – SEZ)

Special Economic Zones (SEZ) are the areas where the economic regulations are different from the rest of the country. With simpler tax regimes and comparatively easier compliance rules to follow, companies registered under SEZ schemes have tax benefits such as 100% Income Tax exemption on export income and exemption from Central Sales Tax, Exemption from Service Tax and Exemption from State sales tax.

If your company or business falls under SEZ, as per the Special Economic Zone Act 2005, then you can easily set up a Company with compliance rules applicable to your business in TallyPrime.

To know more, you can also read our blog, GST on Special Economic Zones (SEZs).

Before you set up a Company in TallyPrime and start recording transactions on a day-to-day basis, there are some prerequisites that you need to meet. 

Registration Under SEZ Scheme

When you want to set up a Company in a special economic zone, you need to submit a proposal to the concerned Development Commissioner, who submits the proposal to an approval committee.

Once your proposal is accepted, your business gets all the benefits of a company in SEZ such as duty-free import (or domestic) procurement of goods for development or 100% Income Tax exemption on export income.

TallyPrime Release 3.0

Once you set up a business under SEZ, you can easily use TallyPrime to record your transactions. All you need to do is download TallyPrime Release 3.0 or a later release, which has a simpler facility to enter GST-related details of your SEZ business.

GST Applicability on Transactions Recorded with Regular – SEZ GST Registration

The supply of goods or services to or from SEZ companies are considered as exports and imports respectively, as the SEZs are considered a different area. Since SEZ companies have tax benefits, the GST applicability on transactions of an SEZ company differs from that of a Regular company.

To more more, refer to the e-Way Bill rules for SEZ section in the blog GST on Special Economic Zones (SEZs).

Click the links below for detailed information on how to use TallyPrime when your GST registration type is Regular – SEZ:

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