Hinjewadi IT Park SEZ Rules

What Are Hinjewadi IT Park SEZ Rules?

Hinjewadi's Rajiv Gandhi Infotech Park, spread across three phases developed by MIDC, is not a single Special Economic Zone. It is predominantly ordinary, non-SEZ IT space — in tax terms, a Domestic Tariff Area — within which certain demarcated parcels have been separately notified as SEZs, typically developer campuses or large company-specific zones. So the first question for any unit is factual: is your building inside a notified SEZ, or in the non-SEZ park? The answer decides which rulebook you follow.

A unit inside a notified SEZ operates almost as a deemed foreign territory: it files SOFTEX for its software exports, keeps a positive Net Foreign Exchange over a five-year block, reports to the Development Commissioner and works under customs bonding, while supplies made to it are zero-rated under GST. A unit in the non-SEZ part of Hinjewadi is an ordinary taxpayer that may register with STPI for duty-free imports and SOFTEX facilitation but gets no income-tax holiday. Crucially, the SEZ profit deduction under Section 10AA is a sunset benefit — available only to units that began operations on or before 31 March 2020.

Who Hinjewadi IT Park SEZ Rules Applies To in Pune

The rules matter to the IT and ITES businesses across Hinjewadi Phases 1 to 3 — but the SEZ obligations reach only the units actually inside a notified zone:

• Units inside a notified SEZ — IT/ITES companies in a developer or company SEZ carry the full SEZ compliance load — SOFTEX, NFE, Development Commissioner reporting and customs bonding.
• Non-SEZ units in the IT park — The majority of Hinjewadi occupants sit in the non-SEZ (DTA) part and are taxed as ordinary companies, often STPI-registered for import and SOFTEX benefits.
• Legacy SEZ units (pre-April 2020) — Units that commenced operations on or before 31 March 2020 can still claim the Section 10AA deduction for their remaining eligible block.
• New SEZ units (post-April 2020) — Units starting after the sunset date get SEZ operational benefits but no 10AA income-tax deduction.
• Suppliers to SEZ units — Vendors supplying goods or services into a Hinjewadi SEZ make zero-rated supplies under GST and can claim a refund or supply under LUT.

See also: Pune city page

How Hinjewadi IT Park SEZ Rules Work

Establishing the right treatment for a Hinjewadi unit follows a clear sequence:

1. 1Confirm SEZ or non-SEZ status

   The unit verifies from the developer and the SEZ notification whether its specific building sits inside a notified SEZ or in the non-SEZ park — the fact that drives everything else.

2. 2Choose the registration route

   An SEZ unit obtains a Letter of Approval from the Development Commissioner; a non-SEZ unit may instead register with STPI for import and SOFTEX facilitation.

3. 3Test the 10AA eligibility

   If in an SEZ, the unit checks the commencement date — only operations on or before 31 March 2020 qualify for the Section 10AA deduction.

4. 4Run export compliance

   SEZ units file SOFTEX for software exports and track Net Foreign Exchange over the five-year block; the artefacts are the SOFTEX forms and the NFE statement.

5. 5Report and reconcile

   SEZ units file quarterly and annual performance reports to the Development Commissioner; GST on inward supplies is treated as zero-rated and reconciled in the returns.

Hinjewadi IT Park SEZ Rules: Local Rules, Rates and Due Dates

Hinjewadi IT Park SEZ Rules: A Practical Example (Pune)

An analytics firm sets up in a notified SEZ tower in Hinjewadi Phase 3 in 2023 and earns ₹4,00,00,000 of export profit. Because it began operations after the 31 March 2020 sunset, it gets no Section 10AA deduction and is taxed as an ordinary company, though it still enjoys SEZ operational benefits and zero-rated inward supplies. A neighbour that started before April 2020 could still claim 10AA relief on the same profit — the commencement date, not the SEZ address, decides the tax outcome.

Common Mistakes With Hinjewadi IT Park SEZ Rules

Errors usually start with assuming SEZ status or an income-tax holiday that no longer exists:

• Assuming all of Hinjewadi is an SEZ — Claiming SEZ benefits from a non-SEZ building is wrong and risks reassessment → confirm the building is inside a notified SEZ before applying any SEZ rule.
• Expecting 10AA for a new unit — Budgeting a tax holiday for a unit started after 31 March 2020 overstates post-tax profit → treat post-sunset SEZ units as ordinary taxpayers for income tax.
• Thinking STPI gives a tax holiday — Assuming STPI registration exempts income tax is outdated — Section 10A/10B lapsed in 2011 → use STPI for duty-free imports and SOFTEX, not for an income-tax exemption.
• Neglecting the NFE obligation — An SEZ unit that ignores its Net Foreign Exchange target risks penalty → track NFE over the five-year block from the start.
• Charging GST on supplies to an SEZ unit — A vendor wrongly charging tax on a zero-rated supply blocks the refund → supply under LUT without tax, or with tax and claim the refund.

Related Accounting Terms

Terms a Pune IT/ITES finance team reads alongside this one:

• LBT (Local Body Tax) Assessment History — A subsumed municipal levy with legacy assessments.
• MCD Commercial Trade Licensing — Municipal trade-licence compliance for commercial premises.
• NCR Inter-State GST Reconciliation — Reconciling GST across state lines for multi-location firms.
• Accounting Terms Glossary — Browse every accounting term in one place.