GIFT City Eligibility Certificate: What Comes After the LOA
The GIFT City Eligibility Certificate tends to arrive before a unit realises it needs one. The Letter of Approval is issued, the team assumes the approvals are done, and then an email lands with the BLUT approval and a certificate attached.
That certificate is the EC. It’s separate from the LOA, the BLUT and the lease deed. Under the Gujarat SEZ Act and Rules, the Administrator (IFSCA) issues it, and a unit needs it to claim state-level tax exemptions such as stamp duty.
It isn’t a blanket tax-exemption certificate. It doesn’t create a benefit the law doesn’t already give, and it says nothing about central incentives like the income-tax holiday.
This guide covers what the EC is, who it’s for, where it fits, how it reaches a unit and what to check before relying on it. It’s written for IFSC units, their compliance teams and landlords who lease space to them.
EC, LOA, BLUT and Lease Deed at a Glance
| Document | What It Does | Issued or Executed by | Where It Sits |
|---|---|---|---|
| LOA | Approves the unit as an SEZ unit for its specific authorised operations | Administrator (IFSCA), after Unit Approval Committee review | First. Everything else follows it |
| BLUT | Records the unit’s SEZ undertakings, backed by a bond (Form-H, Rule 22) | Executed by the unit; approved by the Specified Officer of Customs and the Administrator (IFSCA) | After the LOA |
| Eligibility Certificate | Needed to claim state tax exemptions such as stamp duty | Administrator (IFSCA) | Emailed once the BLUT is approved |
| Lease Deed | Registered document for the unit’s approved premises (Rule 18(2)) | Unit and developer or co-developer | Within six months of the LOA date |
None of these replaces another. A lease deed can’t stand in for the LOA, and an EC can’t stand in for either.
What Is a GIFT City Eligibility Certificate?
The Eligibility Certificate is issued by the Administrator (IFSCA) to an approved IFSC unit. That’s the IFSCA officer who exercises the powers of the Development Commissioner for IFSC units under the SEZ Act.
IFSCA’s SEZ Compliance FAQs give it a narrow purpose. Under the Gujarat SEZ Act and Rules, the EC is necessary to claim state tax exemptions such as stamp duty. Nothing in the FAQs gives it a wider role.
Read that carefully. The certificate shows a unit is in a position to claim a state-level benefit. It doesn’t grant the benefit. The benefit comes from the law, and only for the instruments and transactions that law covers.
The certificate also follows the unit’s premises. The FAQs say a fresh EC is emailed after a change or addition of premises is approved. So the EC reflects the address the unit is approved to operate from.
One point for property buyers. Owning or leasing space in GIFT City doesn’t make anyone eligible. Eligibility belongs to units that hold an LOA and a BLUT approval. A business with a GIFT City address, or an investor with a GIFT City office, has neither.
Why the Eligibility Certificate Matters
The first practical reason is timing. IFSCA’s FAQs list two things a unit needs when it executes its lease deed: a valid LOA and the EC. The EC is issued with the approved BLUT, so a slow BLUT can hold up the lease. The lease deed has its own clock too, six months from the LOA date.
The second reason is the benefit itself. State-level concessions, with stamp duty the one IFSCA names, can matter on the instruments a unit signs. Whether one applies depends on the exact instrument, the transaction and the law in force on the day. The EC is the paperwork that lets a unit make the claim. It isn’t the analysis of whether the claim is valid.
Developers, co-developers and landlords have a stake as well. A co-developer signing a lease with an IFSC unit is dealing with a tenant expected to hold both a valid LOA and an EC. Legal teams on either side should treat the EC as part of the lease file, not a side document.
Last, it’s a compliance record. Keep it with the LOA, the approved BLUT and the registered lease deed.
Where the Eligibility Certificate Fits in the Setup Sequence
The usual order looks like this.
- PLOA: The developer or co-developer provisionally reserves the premises for the unit.
- LOA: The SEZ approval, issued by the Administrator (IFSCA) after the Unit Approval Committee clears the application.
- BLUT: The unit executes its bond-cum-legal undertaking in Form-H, now electronically, and files it through a ‘New LUT’ request.
- EC: Emailed to the unit once that BLUT is approved.
- Lease Deed: Registered and submitted within six months of the LOA date, with a valid LOA and the EC in hand.
- Commencement: The unit intimates its start of operations. IFSCA won’t take the intimation on record without the registered lease deed.
Note where the EC sits. IFSCA’s FAQs say it’s issued with the BLUT approval and needed when the lease deed is executed. That puts it before the lease deed, not after.
Treat this as the usual pattern, not a rigid queue. Some steps overlap in practice, so confirm the expected order for your case with IFSCA.
What Benefits Can the EC Relate to?
Start with what IFSCA actually says. It ties the GIFT City Eligibility Certificate to state tax exemptions under the Gujarat SEZ Act and Rules, with stamp duty as the named example. That’s a narrow, state-level category.
For the underlying law, a 2024 legal commentary quotes Section 21(1) of the Gujarat SEZ Act, 2004. It covers stamp duty and registration fees on land transfers meant for approved units, and on loan agreements, credit deeds and mortgages executed by the unit. It also covers certain other state levies.
The same commentary flags a limit. A state Act can’t reach instruments that fall under central law, such as bills of exchange, cheques, promissory notes, letters of credit and insurance policies. Treat that as commentary to verify against the current statute, not the final word.
| Benefit | Authority or Law | Potential Qualifying Unit | Condition or Limitation |
|---|---|---|---|
| Stamp duty and registration fees on land transfers meant for approved units | Gujarat SEZ Act, 2004, s. 21(1)(a) | Approved SEZ units | Confirm the current text and how a claim is made |
| Stamp duty and registration fees on loan agreements, credit deeds and mortgages | Gujarat SEZ Act, 2004, s. 21(1)(b) | Approved SEZ units | Doesn’t reach instruments governed by central law |
| Income-Tax Holiday | Central income-tax law | Eligible IFSC units | Separate conditions, not tied to the EC. Budget 2026-27 raised the window to 20 years out of 25 |
| Customs duty and GST savings that the bond is sized against | SEZ Act and Rules; central law | SEZ units | Handled through the BLUT and SEZ Online, not the EC |
This article doesn’t state a stamp-duty rate or promise an exemption for any instrument. That depends on the law in force and the document in front of you. GIFT City’s official useful-links page also lists a Stamp Duty Refund portal. Check what it covers for your transaction before assuming how a claim runs.
Who Can Obtain and Use an EC?
The EC is for IFSC units. An IFSC unit established under the SEZ framework is an SEZ unit, so it goes through the LOA and BLUT steps that lead to the EC.
A business in the Domestic Tariff Area isn’t an SEZ unit. It has no LOA, no BLUT and no EC. It operates under standard Indian rules and can’t claim benefits that depend on one.
Even for a unit, eligibility isn’t one-size-fits-all. It turns on the unit’s status, its authorised activity, and the specific benefit and instrument in question.
Structures add a wrinkle. A fund launched by a fund management entity is its own SEZ unit with its own LOA, and IFSCA’s FAQs apply the six-month lease deed rule to each fund separately. If you run an entity with funds, confirm with IFSCA how the paperwork applies across the group.
Who This Is Not for
- An ordinary residential buyer, whether buying to live in the home or to invest.
- A passive property investor with no IFSC unit of their own. SEZ space is meant for occupation by approved units, so rental-income buyers usually look at the DTA.
- A business with GIFT City premises but no LOA.
How the GIFT City Eligibility Certificate Reaches a Unit
Here’s the part that surprises people. There’s no separate EC application. IFSCA’s FAQs say that once the BLUT, filed through a ‘New LUT’ request, is approved by both the Specified Officer of Customs and the Administrator (IFSCA), the EC is emailed to the unit.
So the process is really the BLUT process. In practice it runs like this.
- Get the LOA and activate/access SEZ Online, completing the applicable portal formalities before filing the BLUT.
- Prepare the BLUT in Form-H. Since Instruction No. 123 of 23 February 2026, it can be executed as an e-BLUT and signed digitally. Notarised stamp paper is no longer required.
- File a ‘New LUT’ request on SEZ Online. Attach the complete, signed PDF, as set out in IFSCA Public Notice No. 06/2026-27 dated 12 August 2026.
- Wait for both approvals. The Specified Officer and the Administrator approve in the portal, and the bond amount and validity dates update automatically.
- Receive the EC by email. Save it with the BLUT record.
- Use it at the lease deed stage. If premises change later, expect a fresh EC after approval.
One portal detail costs units time. SEZ Online has Maker, Checker and Approver users, and a request only reaches the Administrator once it’s submitted from the Approver ID. The portal also takes a single PDF per request, so merge the BLUT and its supporting papers into one file.
Older material describes a different route. Under the March 2025 version of IFSCA’s FAQs, the BLUT was executed on notarised stamp paper, approved in physical form and then re-filed online, with the EC arriving alongside the physical approval. The no-separate-application rule was the same then and is the same now. The steps behind it have changed.
Portals, forms and fees get updated. Confirm the current route on IFSCA’s website and SEZ Online before filing.
Documents and Details to Check
- IFSCA’s guidance doesn’t list a separate document set for the EC, because a unit doesn’t file for it. What you can check is everything that feeds into it and depends on it.
- The legal entity name, exactly as it appears on the LOA.
- The LOA details and the authorised operations.
- The SEZ premises address, matching the PLOA and the LOA.
- BLUT particulars: name, SEZ address, obligor, and a bond amount no lower than the calculation sheet.
- BLUT supporting papers: the letter accepting the LOA, the bond value sheet, the board resolution and the obligor’s KYC.
- Lease deed terms. The lease period can’t be under five years under Rule 11(5) of the SEZ Rules.
- The transaction or instrument for which you plan to claim a state benefit.
- The authorised signatory and current entity records.
IFSCA’s guidance stresses that names and addresses in the BLUT must be free of errors. Keep them consistent across every document, and file the emailed EC alongside the approved BLUT.
Common Mistakes
- Looking for an EC application form. There isn’t one. The certificate follows BLUT approval.
- Assuming it’s automatic after the LOA. A delayed BLUT delays the EC.
- Treating it as a blanket tax-exemption certificate.
- Assuming every GIFT City property buyer gets the same benefit.
- Mixing state-level benefits with central income-tax incentives.
- Working from an outdated guide that still describes stamp paper and notarisation.
- Not checking whether the specific instrument qualifies.
- Relying on a developer’s marketing line instead of the law, or losing the emailed certificate and missing the fresh one after a change of premises.
A Practical Example
Take a fund management entity that holds its LOA. It executed an e-BLUT, filed the ‘New LUT’ request and received its EC by email after approval. Now it’s finalising a lease with its co-developer for the premises named in the LOA, and the six-month window is running from the LOA date.
Before signing, the compliance team checks four things.
- The entity name and premises on the EC match the lease.
- Whether any state-level concession applies to this instrument under current Gujarat law and notifications.
- How a claim would actually run, at registration or afterwards, and whether the Stamp Duty Refund portal is relevant.
- Written confirmation from counsel before registration.
Notice What’s Missing: A savings figure. Without the current rate and the exact instrument, any number would be a guess. The EC is part of the documentation used when seeking the relevant state-level benefit. The legal conditions still decide whether the claim succeeds.
This is an illustration, not a statement that a lease deed qualifies for any particular exemption.
Wrapping Up: What to Take Away
The Eligibility Certificate is a small document with a specific job. It shows an approved IFSC unit can claim state-level benefits, with stamp duty the example IFSCA gives. It arrives with the BLUT approval, it’s needed at the lease deed stage, and it never replaces the law behind an exemption.
Read the GIFT City Eligibility Certificate alongside the conditions for your own instrument, and have your CA or counsel confirm before you rely on it. Related guides: the GIFT City LOA, BLUT, Lease Deed, PLOA and SEZ. Still choosing premises? GIFT2Invest.com lists SEZ and DTA commercial space with zone classification stated upfront.
FAQs: Eligibility Certificate in GIFT City
Q1) What Is the Eligibility Certificate?
A certificate issued by the Administrator (IFSCA) to an approved IFSC unit. Under the Gujarat SEZ Act and Rules, it’s needed to claim state tax exemptions such as stamp duty.
Q2) Who Issues It?
The Administrator (IFSCA), the IFSCA officer who holds the Development Commissioner’s powers for IFSC units.
Q3) Who Needs It?
IFSC units that want to claim state-level exemptions. IFSCA’s FAQs also list it among the things a unit needs when executing its lease deed.
Q4) Is It Mandatory for Every GIFT City Company?
No. It applies to IFSC units. A Domestic Tariff Area business isn’t an SEZ unit and has no LOA, BLUT or EC.
Q5) Is the EC the Same As the LOA?
No. The LOA approves the unit as an SEZ unit for specific operations. The EC is a separate certificate tied to state-level benefits.
Q6) Is the EC the Same As the BLUT?
No. The BLUT is the unit’s undertaking and bond. The EC is emailed once the BLUT is approved, but it’s a separate document.
Q7) Does Buying Property in GIFT City Qualify Me?
No. Eligibility belongs to approved IFSC units. Owning or leasing space doesn’t create it.
Q8) What Benefits Are Connected With the EC?
State-level exemptions under the Gujarat SEZ Act and Rules, with stamp duty as IFSCA’s named example. Scope depends on the instrument and the law in force.
Q9) Does the EC Give a Blanket Stamp-Duty Exemption?
No. Whether an exemption applies depends on the specific instrument and current law. Some instruments fall under central law, which the state Act can’t override.
Q10) Does the EC Provide Income-Tax Exemption?
No. Central incentives sit under income-tax law with their own conditions, and they aren’t claimed through the EC.
Q11) When Should a Unit Apply?
It doesn’t file a separate application. The EC follows BLUT approval, so the practical step is to file a clean ‘New LUT’ request promptly after the LOA.
Q12) What Documents Are Required?
None for the EC itself under IFSCA’s guidance. The documents that matter are the BLUT package: Form-H, the LOA acceptance letter, the bond value sheet, the board resolution and the obligor’s KYC.
Q13) Can It Be Used for Every Transaction?
No. It supports claims for state-level benefits, and only where the law covers the instrument.
Q14) What Happens if Details Change?
For a change or addition of premises, IFSCA issues a fresh EC by email after approving the request. For other changes, check with IFSCA and your counsel.
Q15) Where Should I Verify the Current Procedure?
On IFSCA’s website and SEZ Online, in its SEZ Compliance FAQs and public notices, and with a CA or lawyer who works on GIFT City units.
Sources & References
Checked at the time of writing. IFSCA guidance, forms and portals are updated periodically, so verify the current position before relying on any step described here.
IFSCA, SEZ Compliance FAQs Booklet, Version 1.0 (March 2025), Section D (Eligibility Certificate) and Section E (Lease Deed)
https://ifsca.gov.in/Document/Developments/SEZ_Compliance_FAQs_Booklet.pdf
IFSCA, SEZ Compliance FAQs Booklet, Version 2.0 (August 2026), full text as reproduced by TaxGuru. Confirm against the current official version on IFSCA’s website
https://taxguru.in/finance/ifsca-sez-compliance-faqs-loa-blut-lease-iec.html
A2Z Taxcorp, summary of FAQs Version 2.0, Instruction No. 123 (23.02.2026) and Public Notice No. 06/2026-27 (12.08.2026)
https://a2ztaxcorp.net/ifsca-releases-updated-sez-compliance-faqs-to-simplify-regulatory-processes-for-gift-ifsc-unit-sez-compliance-faqs-booklet-version-2-0-consolidates-guidance-on-loa-e-blut-lease-deeds-commencement/
GIFT City official portal, Useful Links (lists the GIFT Stamp Duty Refund portal)
https://www.giftgujarat.in/useful-links
GIFT City official portal, Setting up in GIFT City / IFSC
https://giftgujarat.in/business/ifsc
Dhaval Vussonji & Associates via Mondaq, Stamp Duty in Modi’s GIFT City (31 May 2024), quoting Section 21(1) of the Gujarat SEZ Act, 2004
https://www.mondaq.com/india/sales-taxes-vat-gst/1472944/stamp-duty-in-modis-gift-city
Business Standard, Union Budget 2026-27: GIFT City tax holiday extended to 20 years (1 February 2026)
https://www.business-standard.com/budget/news/centre-doubles-gift-city-tax-holiday-20-years-126020100926_1.html
TaxGuru, IFSC tax holiday extended to 20 years under Finance Bill 2026 (explanatory memorandum extract)
https://taxguru.in/income-tax/ifsc-tax-holiday-extended-20-years-finance-bill-2026.html
Ministry of Commerce and Industry, Instruction No. 123 dated 23.02.2026 (e-BLUT), as referred to in IFSCA’s FAQs
https://www.sezindia.gov.in
IFSCA official website and public notices
https://www.ifsca.gov.in
IFSCA, SEZ Administrator – Compliance FAQ and Public Notices page (current reference page)
https://ifsca.gov.in/SezMeeting/Index
Income Tax Department, Government of India, Budget 2026 FAQ – Rationalisation of Tax Rate and Extension of Deduction for IFSC and OBUs
https://incometaxindia.gov.in/Documents/Budget2026/FAQs-Budget-2026.pdf
Source Note: This article is general information and not legal, tax or regulatory advice. Whether any state-level benefit applies to a particular instrument depends on the law in force and the unit’s facts. Confirm with a qualified CA or property and SEZ lawyer before acting.
