SEZs

CBIC's SEZ clarification eases drawback claims on re-exports, but gaps persist for DTA-to-SEZ supplies, calling for a broader, consistent tax interpretation

The government has clarified that when goods are supplied from SEZ units to the domestic market after paying applicable duties and later re-exported, they will be treated as imported goods for the purposes of disbursement of duty drawback. The instruction clarifies that goods supplied by an SEZ unit to the Domestic Tariff Area (DTA) after payment of customs duties will be treated as imported goods if later re-exported. According to an instruction of the Central Board of Indirect Taxes and Customs (CBIC) to customs authorities, it has been observed by the audit that divergent practices are being followed in the processing of duty drawback claims filed by DTA units under Customs law. It has been stated that some field formations have not treated clearance from SEZ to DTA as import and have denied the disbursement of drawback under Section 74 of the Customs Act, 1962. "...it is hereby clarified that in cases where goods are cleared into DTA from SEZ unit on payment of applicable duti

Most SEZ-to-DTA supplies may miss out on duty relief, with industry flagging limited benefits and lack of clarity in the Centre's one-time concession scheme

The lowered duty ‌rates will range between 5 per cent to 12.5 per cent across industries

India has emerged as the undisputed global hub for Global Capability Centres (GCCs), hosting over 55 per cent of such facilities worldwide, yet these innovation engines must navigate a staggering regulatory maze of more than 500 distinct legal obligations and over 2,000 annual filings across central, state, and local levels. TeamLease RegTech, in a study titled 'GCCs in India: Cultivating Capability, Ensuring Compliance', noted that despite their rapid expansion and contribution of over USD 64.6 billion in export revenue, GCCs operate within one of the most extensive compliance frameworks governing any enterprise ecosystem. "The compliance requirements for a typical GCC establishment can be classified across seven categories. Each of these categories contains several laws, rules and regulations with varying degrees of applicability depending on the establishment's size, nature and operations. "A GCC registered under a Special Economic Zone in Karnataka with a 1,000-seating capacity

The relaxation on domestic sales for special economic zone (SEZ) units proposed in the Budget will be a "limited-time window" to help these export-oriented enterprises tide over global uncertainties, Revenue Secretary Arvind Shrivastava said on Monday. "SEZs' focus is exports, and that will continue to remain as exports. Therefore, this window being created is expected to be a one-time, limited-time frame window, and we hope, during this period, the various uncertainties and volatilities of the international trade will also pass over, and we will be in a position to get back stability on that front too," the secretary said at a CII post-Budget interaction here. To address concerns arising about the utilisation of capacities by manufacturing units in the SEZs due to global trade disruptions, Finance Minister Nirmala Sitharaman, in her Budget speech, proposed a "special one-time measure" to facilitate sales by eligible manufacturing units in SEZs to the DTA (domestic tariff area) at ..

The Union Budget proposes a one-time measure allowing eligible SEZ manufacturing units to sell a portion of their output in the domestic market at concessional duty to offset US tariff shocks

The government is examining proposals to roll out certain relief measures to boost production in Special Economic Zones (SEZs), Commerce and Industry Minister Piyush Goyal said on Saturday. He also said the ministry is looking at ways and means to promote excess capacities in these zones for use in the domestic market in India. This will be in a way also an import substitution because many goods that come into India from other countries get better benefits than the SEZ supplies to DTAs (domestic tariffs areas), he said while visiting Brandix textiles units in Andhra Pradesh SEZ here. "We are trying to bridge that gap and we are very hopeful that soon the output from all the SEZs will increase in a big way. "We are also examining what further relief we can give to the SEZs so that we can increase production in these zones," he said. The minister was here to attend CII Partnership Summit 2025. He added that the SEZ Commissioners of the country have been asked to hold a meeting here

I think the CBIC should take note of the difficulties of the trade and amend the definition of 'export' at Rule 2(b) of Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995.

SEZ service exports face DTA payment disputes, GST relief linked to strict compliance, and CBIC eases customs with a single all-India electronic bond system

The wildlife board may revise eco-sensitive zone rules to allow site-specific plans, after states said rigid norms were hurting local development and delaying new protected area proposals

At present, SEZs pay full customs duty, in case a finished product is sold outside these zones, known as domestic tariff area (DTA). Based on the industry's long-standing request

The implementation of the Goods and Services Tax (GST) regime imposed heavy costs on the trade due to unpreparedness of the GST Network, the digital platform, to handle the processes

India's apex IT industry body Nasscom has batted for tweaks in safe harbour rules and widening the scope for utilisation of SEZ reinvestment reserves in its Budget wishlist, while advocating for creation of a central deeptech fund to bolster startup ecosystem in India. Creation of a grant framework for the deeptech ecosystem, and making the deferment of the time of payment of tax on Employee Stock Option Plan available to employees of all DPIIT-recognized startups also tops the Budget expectations of the industry. The Union Budget for financial year 2025-26 is scheduled to be presented in Parliament by Finance Minister Nirmala Sitharaman on February 1, 2025. For the USD 250 billion export-led Indian IT industry, the Budget comes amid continued global macro headwinds, geopolitical risks, and growing unease about possibility of sudden policy and tariff moves by the US, where President Donald Trump has promised to script a new, glorious chapter for America with his headline-grabbing ..

An investigation by the Directorate of GST Intelligence (DGGI) found insurers wrongly extending tax exemptions to group medical insurance cover for employees of SEZ units and their families

The government has clarified that its decision to impose import curbs on certain types of studded gold jewellery is not applicable for units in the special economic zones (SEZs). On June 11, the directorate general of foreign trade (DGFT) through a notification imposed the restrictions to discourage inbound shipments of these items from countries like Indonesia and Tanzania. "It is clarified that imports made by SEZ units (other than free trade warehousing zones)...are outside the purview of this notification," the directorate general of foreign trade (DGFT) has said in a policy circular. The DGFT has said that it has received representations from SEZ units highlighting the issues faced by them due to this notification. Goods under restricted category need a licence/permission from the government. SEZs are key export hubs which contributed over one-third of the country's total outbound shipments in the last fiscal. These are enclosures that are treated as foreign territories for t

AAR observed that this clarification was given to a specific SEZ unit and is not a circular but there is no bar in borrowing the rationale of the clarification

The proposed amendments in the Special Economic Zones (SEZ) law are expected to figure in the 100-day agenda of the commerce ministry for the next government and it may be introduced in the monsoon session of Parliament, sources said. The monsoon session will be the first session of the newly elected government which will also see the presentation of the full budget for 2024-25. The seven-phase Lok Sabha polls, the world's biggest election exercise, will kick off on April 19 with the counting of votes set to take place on June 4. The government is considering several measures such as a flexible framework for the sale of products manufactured in SEZs in the domestic market, and streamlining approval processes for units, they said. The aim is to help revive SEZs and facilitate business transactions between SEZs and the domestic tariff area (DTA) or the domestic market. SEZs are enclosures that are treated as foreign territories for trade and customs duties, with restrictions on ...

When we get the EPCG authorization, we can get the bill of entry finalized by claiming the exemption under the relevant Customs notification

West Bengal's gross state domestic product (GSDP) is likely to grow 10.5 for the financial year 2024-25 over the preceding fiscal, state industry and commerce minister Shashi Panja said on Thursday. The Economic Review for 2023-24 indicated that the state GSDP to grow by 7.65 per cent, outpacing the National average of 7.32 per cent. Speaking at a CII event here, the minister said West Bengal currently holds the position of the fourth-largest economy in the country. "The GSDP of the state for 2024-25 is estimated to grow at 10.5 per cent over the preceding fiscal", she said. Panja said the manufacturing sector of the state grew at 7.8 per cent in 2022-23, surpassing the national average of five per cent. She said that there had been no incidence of strikes since 2010-11, the state has uninterrupted power supply and also serves as a gateway to South East Asia with a substantial consumer base. Additional chief secretary and CMD of West Bengal Industrial Development Corporation (WBI