What is SEZ?
A Special Economic Zone, or SEZ, is a notified area in India that is treated differently from the rest of the country for customs, tax and trade purposes. Businesses set up as units inside an SEZ get specific benefits in exchange for meeting export-related conditions, and they are supervised by an SEZ Development Commissioner. Many IT parks and software campuses in cities such as Bengaluru, Hyderabad, Pune and Chennai include SEZ buildings.
Why it matters for exporters
The 2026 export regulations set a different filing route for SEZ units. Whether you export software or other services, if your unit is in an SEZ, you submit the EDF to the SEZ Development Commissioner rather than to your AD bank or STPI. In field 1.5 (category of exporter), you would tick "SEZ".
The rest of the form works the same way: one row per invoice in Part 2B, the total in rupees in field 1.22, and the declaration in Part 4. The realisation rules (9 months from invoice date for services, 12 months for rupee invoicing) apply too. SEZ-specific procedures, such as how the Development Commissioner's office accepts forms, can differ, so confirm locally. See SEZ units and the EDF.
Example
Indigo Analytics Pvt Ltd has two offices: an SEZ unit in Hyderabad and a regular office in Mumbai. October 2026 invoices from the SEZ unit (₹12,00,000) go on an EDF to the Development Commissioner. Invoices raised by the Mumbai office (₹4,50,000) go on a separate EDF to the AD bank. Both are due by 30 November 2026.
Common confusion
Being located in a tech park does not automatically make you an SEZ unit. You are an SEZ unit only if you hold an approval for a unit in a notified zone. If you are outside one, you are usually a DTA unit for EDF purposes.