Zero-Rated • Officer Endorsement Required

GST Refund: SEZ Supplies

Supplying to a SEZ unit or developer is zero-rated like an export — but one missing signature is the top reason these claims bounce back.

What This Refund Covers

Supplies of goods or services made to a SEZ unit or SEZ developer for authorised operations are treated as zero-rated supplies under Section 16 of the IGST Act — the same status as a physical export. You can supply either under a Letter of Undertaking (claiming back accumulated ITC) or with IGST paid upfront (claiming the tax itself back), exactly like the two export routes.

The one extra requirement that trips up most first-time claimants: your tax invoice needs an endorsement from the SEZ's specified officer, confirming the SEZ unit actually received the goods or services for its authorised operations. Without this, the supply can't be treated as zero-rated no matter how correctly everything else is filed. In rarer cases, the SEZ unit itself may claim a refund on specific inward supplies — but most of its purchases are already zero-rated at source, so this is uncommon.

Section 16IGST Act — treated as zero-rated

MandatorySEZ officer endorsement on invoice

2 YrsFrom export-equivalent relevant date

Be Prepared

Documents Required

SEZ Officer Endorsement

On the original tax invoice — confirms the goods/services were received by the SEZ unit for authorised operations.

Statement 2 or 4

Depending on whether the supply was made with or without payment of tax.

LUT (If Without Payment of Tax)

Valid for the financial year, same as a physical export under LUT.

SEZ Unit's Letter of Approval (LOA)

Showing the "authorised operations" list, to demonstrate the supply is actually linked to one of them.

Recipient's Non-ITC Declaration

Confirmation that the SEZ unit hasn't availed ITC on the supply, when the supplier is claiming the refund.

CA Certificate / Self-Declaration

Rule 89(2) declaration on unjust enrichment — self-declaration under ₹2 lakh, CA/CMA certificate above it.

Avoid the Common Traps

Why This Claim Gets Rejected

Missing SEZ Endorsement

By far the most common rejection reason — the invoice wasn't endorsed by the SEZ's specified officer.

Not Linked to Authorised Operations

The supply doesn't match anything listed in the SEZ unit's Letter of Approval.

Missing ITC Declaration

Supplier claims the refund without the SEZ unit's declaration that it hasn't availed ITC on the same supply.

FAQs

What is SEZ officer endorsement and why is it required?

It's a confirmation from the SEZ's specified officer on your tax invoice that the SEZ unit actually received the goods or services for authorised operations. It's a mandatory precondition for treating the supply as zero-rated, and its absence is the most common reason SEZ refund claims are rejected.

Can an SEZ unit itself claim a GST refund?

Only in limited circumstances. Since supplies made TO an SEZ unit are already zero-rated at the supplier's end, the SEZ unit itself rarely ends up paying GST that needs refunding — this scenario mainly arises for specific inward supplies not covered by the standard zero-rating.

Is a supply to SEZ treated the same as a regular export?

Yes — supplies to a SEZ unit or developer for authorised operations are treated as zero-rated supplies under Section 16 of the IGST Act, following the same LUT or IGST-paid routes as a physical export, just with the added SEZ officer endorsement requirement.

Supplying to a SEZ Unit or Developer?

Send us your invoice details on WhatsApp — we'll make sure the endorsement and paperwork are right before you file.

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