SEZ Units: Proforma Invoice Compliance

In the dynamic landscape of India's Special Economic Zones (SEZ), ensuring **proforma invoice compliance** is crucial for seamless operations under GST regulations. SEZ units benefit from zero-rated supplies to boost exports, but strict adherence to invoice formats, e-invoicing exemptions, and endorsement procedures is mandatory. This blog delves into the intricacies of **invoice format for SEZ under GST**, including **rent invoice** specifics, supplier obligations, and best practices for DTA supplies to SEZ units and developers.[1][2]

Understanding SEZ Supplies and GST Framework

SEZ supplies are classified as zero-rated under GST to promote economic growth and exports. Suppliers to SEZ units can opt for paying IGST with refund claims or supply under Letter of Undertaking (LUT) without tax payment, enabling Input Tax Credit (ITC) claims. Key to this is generating compliant invoices that meet Rule 46 of CGST Rules. For instance, invoices must detail supplier and buyer GSTIN, HSN codes, quantities, and a clear statement like "Supply meant for SEZ with payment of integrated tax."[1]

E-Invoicing Applicability for SEZ Units and Developers

SEZ units are explicitly exempt from e-invoicing for outward supplies, as per Notification No. 61/2020-CT. However, SEZ developers must comply if their aggregate annual turnover exceeds thresholds (e.g., Rs. 5 crore or updated limits). For supplies to SEZ units, regular taxpayers (DTA suppliers) need to generate Invoice Reference Number (IRN) using transaction types like SEZWP (with payment) or SEZWOP (without payment). This ensures auto-population in GSTR-1 and faster GST refunds.[1][4][7]

In cases where DTA and SEZ units share the same PAN, e-invoicing eligibility is based on the entity's total turnover. If over Rs. 500 crore, DTA units and developers must issue e-invoices, but SEZ units remain exempt.[1][4]

Proforma and Rent Invoice Specifics in SEZ Compliance

**Proforma invoices** serve as preliminary documents outlining supply terms before final invoicing. In SEZ contexts, they must align with GST norms, including tentative values, HSN codes, and SEZ-specific declarations. For **rent invoice** transactions, such as leasing space within SEZ, invoices require Accounting Codes for services, buyer details if unregistered (name, address, state code if value > Rs. 50,000), and delivery address if different. Suppliers must include signatures and a 16-character invoice number.[1]

Physical submission and endorsement of DTA procurement invoices, including **rent invoices**, have been simplified via SEZ Online portals. Units upload scanned GST invoices with DTA Procurement Forms (DPF/DSPF), payment proofs for services, and ensure reflection in GSTR-2A.[2][3][8]

Endorsement Procedures for SEZ Procurement

SEZ units and developers must obtain endorsements from Specified Officers for DTA supplies. Post-GST, endorsement is mandatory only if suppliers claim refunds. Circulars advocate shifting from 100% physical checks to risk-based or self-certification models, especially for services via online modules. Failure to forward endorsed copies to suppliers' GST officers within 45 days can trigger demands on suppliers.[2][6]

Under Bond/LUT, invoices must bear the Bond/LUT number. For goods, procurement can be invoice-based or via transport documents without physical endorsement in some cases.[6][8]

Key Invoice Format Requirements Under Rule 46

• Name, GSTIN, and address of supplier and registered buyer.
• Serial invoice number (up to 16 characters) and date.
• HSN for goods, Accounting Code for services like **rent invoice**.
• Quantity in units (e.g., kg, meters).
• Total value, tax rates (zero-rated for SEZ), and signatures.
• SEZ-specific statement for zero-rated supplies.

Accurate formatting enhances transparency and accelerates refunds.[1]

Challenges and Best Practices for Compliance

Common pitfalls include incorrect transaction types in IRN generation, missing endorsements, or non-reflection in GSTR-2A. Best practices: Use SEZ Online for digital submissions, verify supplier e-invoice status via GST portals, and maintain LUT/Bond records. Recent updates (as of 2025) mandate e-invoicing for higher turnovers (Rs. 10 crore+ AATO).[9]

For **rent invoice** in SEZ, pair with payment proofs during uploads to expedite approvals. Streamlined processes reduce manual interventions, aligning with digital GST initiatives.[2][3]

Conclusion: Streamline Your SEZ Operations

Mastering **proforma invoice compliance** and **rent invoice** handling ensures uninterrupted SEZ operations. Stay updated with notifications, leverage online tools, and consult experts for entity-specific advice. Compliant invoicing not only avoids penalties but also unlocks faster refunds and ITC benefits.[1][4]