GST for SEZ Dealers – An Overview

Last updated on: November 2, 2026 | ⏱ 4 min read

If your business operates in a Special Economic Zone (SEZ), you can manage your GST compliance seamlessly using TallyPrime.

SEZs are designated areas with simplified economic and tax regulations. Businesses registered under the SEZ can avail benefits such as:

100% Income Tax exemption on export income
Exemption from CST, Service Tax, and State sales tax
Duty-free procurement and import of goods for authorised operations

As GST compliance for SEZ businesses differs from that of Regular businesses, TallyPrime provides dedicated features to help you record transactions, manage GST, and file returns with ease.

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

If you are a Regular or Composition dealer, refer to the GST Regular and GST Composition pages.

Getting Started with GST

Configure your Company with GST details and complete the required GST setup for your masters to start recording SEZ transactions.

Easily set up GST for Company registered under SEZ in TallyPrime.

GST Entries for Sales

Points to remember while recording Sales voucher under SEZ.

Transactions	Tax Applicability
Supply of Goods to a GST Regular Party	IGST is paid by the buyer under Reverse Charge Mechanism (RCM).
Supply of Goods to a Regular–SEZ Party	You are liable to pay IGST to the Government.
Supply of Services to a GST Regular Party or Regular–SEZ Party	You are liable to pay IGST to the Government.

GST Entries for Purchase

Points to remember while recording Purchase voucher under SEZ.

Transactions	Tax Applicability
Purchase of Goods from a GST Regular Party or Regular–SEZ Party	If the supplier is selling goods under LUT Bond then no tax is to be paid. If the supplier is selling goods without LUT Bond, then you are liable to pay IGST and can take the Input Tax Credit.
Purchase of Services from a GST Regular Party or Regular–SEZ Party	If the supplier is selling goods under LUT Bond then no tax is to be paid. If the supplier is selling goods without LUT Bond, then you are liable to pay IGST and can take the Input Tax Credit.