How do I issue a GST-exempt (Non-GST) invoice when a client is from a Special Economic Zone (SEZ)?

How do I issue a GST-exempt (Non-GST) invoice when a client is from a Special Economic Zone (SEZ)?

⚡Quick answer

Because supplies to an SEZ Developer/Unit are Zero-Rated under the GST Act, you may issue a Non-GST invoice only after:

  1. Collecting three mandatory documents (SEZ Certificate, Entity-Incorporation Proof, PAN).
  2. Emailing those documents and the payment reference number to the Finance Team — and ensuring the payment is not auto-settled.
  3. Waiting for Finance to claim the payment manually and release the Non-GST invoice; Tech Support will then settle the payment.

When should I use this guide?

Use these steps whenever a client claims SEZ status and requests an invoice with zero GST.




GST rule for SEZ supplies

As per the GST Act, any supply of goods or services to an SEZ Developer/Unit is treated as a Zero-Rated Supply, meaning such supplies attract a zero tax rate and are exempt from GST.




Mandatory client documents

To issue a Non-GST invoice, the client must submit:

  • SEZ Certificate (issued under the SEZ Act, 2005)
  • Entity Incorporation Proof
  • PAN (Personal Identification Number)



Step-by-step process

  1. Ensure the payment is not auto-settled.
  2. Email the Finance Team with: 
    1. Payment reference number, and 
    2. All three mandatory documents above.
  3. Finance Team action – Finance will claim the payment manually and issue a Non-GST Invoice with the required declaration.
  4. Tech Support action – Once claimed by Finance, the Tech Support Team will settle the payment with the client's PAN.



Post-issue actions

After Finance issues the Non-GST invoice and Tech Support settles the payment, file the documents in the client record for future audits.




Why are requests getting delayed?

Requests are delayed or rejected if:

• Any of the three mandatory documents is missing or invalid.

• The payment auto-settles before Finance claims it manually.