diff --git a/erpnext/regional/india/e_invoice/utils.py b/erpnext/regional/india/e_invoice/utils.py
index 45ceb1566c6..251404a46a1 100644
--- a/erpnext/regional/india/e_invoice/utils.py
+++ b/erpnext/regional/india/e_invoice/utils.py
@@ -71,7 +71,11 @@ def validate_eligibility(doc):
 
 	# if export invoice, then taxes can be empty
 	# invoice can only be ineligible if no taxes applied and is not an export invoice
-	no_taxes_applied = not doc.get("taxes") and not doc.get("gst_category") == "Overseas"
+	no_taxes_applied = (
+		not doc.get("taxes")
+		and not doc.get("gst_category") == "Overseas"
+		and not doc.get("gst_category") == "SEZ"
+	)
 	has_non_gst_item = any(d for d in doc.get("items", []) if d.get("is_non_gst"))
 
 	if (