SEZs are treated as foreign territory for tax purposes even though they are located within a country’s borders. Supplies into SEZs are exempt from paying GST because they are considered as exports. But, when an SEZ supplies goods/services to anyone, it will be deemed a regular inter-state supply and will attract IGST. However, when an SEZ supplies goods/services to a Domestic Tariff Area (DTA), it is exempt from paying taxes, although the receiver in the DTA has to pay.