The Ministry of Commerce & Industry, Department of Commerce, issued Instruction No. 120 on October 7, 2025, to clarify the requirement for filing SOFTEX (Software Export) forms concerning service transactions involving Special Economic Zone (SEZ) units. The instruction addresses a persistent industry demand for clarity regarding the export of services between one SEZ unit and another SEZ unit, as well as from a Domestic Tariff Area (DTA) unit to an SEZ unit. The Ministry explicitly stated that such transactions—those between SEZ units and those between DTA units and SEZ units for the export of services—are not subject to FEMA (Foreign Exchange Management Act) regulations. Consequently, there is no requirement for filing a declaration in either the Export Declaration Form (EDF) or the SOFTEX form for these specific service exports. This directive, issued in consultation with the Reserve Bank of India, simplifies the compliance process for units operating within the SEZ framework and DTA suppliers to SEZs.
K-43022/92/2025-SEZ
Government of India
Ministry of Commerce & Industry
Department of Commerce
Instruction No. 120 | 7th October, 2025
To
The Zonal Development Commissioner
All Zonal Special Economic Zones.
Subject: Clarification regarding requirement of filing SOFTEX forms with respect to invoices raised by one Special Economic Zone (‘SEZ’) unit to other SEZ unit and a unit located in Domestic Tariff Area (‘DTA unit’)-reg.
Ma’am/Sir,
I am directed to refer to the subject mentioned above and to say that the industry has been demanding clarification on the requirement of filing SOFTEX forms for export of services either by one Special Economic Zone (‘SEZ’) unit to other SEZ unit or by a unit located in Domestic Tariff Area (‘DTA unit’) to a unit in SEZ.
2. In this regard, this is to inform that transaction(s) between SEZ Units and the transaction(s) between DTA Unit(s) to SEZ Unit(s) for export of services are not subject to FEMA regulations, and consequently. no declaration is required in EDF or SOFTEX. This may be brought to the notice of all concerned.
3. This issues in consultation with Reserve Bank of India and with the approval of Competent Authority.
Yours faithfully.
(Prateek Bajpai)
Under Secretary to the Govt. of India
Tel. 011-23039829
Email: prateekbajpai.moca@nic.in
