To qualify for EOU status, a unit must:

• SEZ units are exempted from the payment of goods and service tax on “zero rated supplies”.  Section 16 of the IGST Act, 2017 categories the following taxable supplies as “zero rated supplies”
• SEZ units are allowed to import or procure their requirements for capital goods, raw materials, office equipment and other services without the liability to pay any duty on them.
• Goods which have been procured / imported locally are permitted to be employed over the 5-year approval period.
• SEZ units can sub-contract a part of their production through other units located in DTA or SEZ or Export Oriented Units  with prior approval of customs authorities.
• Exemption from other duties under the Customs Act, 1962 or the Custom Tariff Act, 1975 or any other law for the time being in force, on goods imported into, or service provided in, a SEZ or SEZ unit, to carry on the authorised operations by the developer or entrepreneur.
• Exemption from duties under the Customs Act, 1962 or the Customs Tariff Act, 1975 or any other law for the time being in force, on goods exported from, or services provided, from a Special Economic Zone or from a Unit to any place outside India.