Published on: October 2026
FINANCIAL AND COMPLIANCE ASPECTS OF SEZ OPERATIONS WITH REFERENCE TO DOMESTIC TARIFF AREA PROCUREMENT
Somesh Balajirao Narlawar
Prof. Vaibhavi Shahane
INDIRA UNIVERSITY, SCHOOL OF BUSINESS, PUNE
Article Status
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Abstract
The analysis shows that SEZ exports rose from Rs 7.97 lakh crore in 2019–20 to Rs 16.36 lakh crore in 2025–26, an increase of about 105% and a compound annual growth rate of roughly 12.7%, with a single-year decline of 4.7% in 2020–21. About 68.5% of operational SEZs are concentrated in five states. At the transaction level, an eight-step workflow with layered controls (invoice review, HSN and GST reconciliation, LUT validation, Excel-based item upload, document upload and print-trail verification) underpins compliance. A worked case shows that zero-rating avoided Rs 2,78,456.40 of IGST on a Rs 15,46,980 invoice, about 15.3% of the gross value otherwise payable.
The paper recommends automated pre-submission validation, a maker-checker control, a real-time tracking dashboard, structured training and better client communication, and policy support for SEZ development outside the leading states. The study contributes a finance-oriented, transaction-level view that complements the policy-focused SEZ literature.
Keywords: Special Economic Zones; Domestic Tariff Area; zero-rated supply; IGST; Letter of Undertaking; compliance; SEZ Online; export performance
How to Cite this Paper
Narlawar, S. B. (2026). Financial and Compliance Aspects of SEZ Operations with Reference to Domestic Tariff Area Procurement. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(10), 1-9. https://doi.org/10.55041/ijcope.v2i10.205
Narlawar, Somesh. "Financial and Compliance Aspects of SEZ Operations with Reference to Domestic Tariff Area Procurement." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i10.205.
Narlawar, Somesh. "Financial and Compliance Aspects of SEZ Operations with Reference to Domestic Tariff Area Procurement." International Journal of Creative and Open Research in Engineering and Management 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i10.205.
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