Providing relief to SEZs, the government has exempted goods imported by units or developers of special economic zones from integrated goods and services tax (IGST).
"The central government...Hereby exempts all goods imported by a unit or a developer in the Special Economic Zone (SEZ) for authorised operations, from the whole of the integrated tax leviable thereon under...The Customs Tariff Act, 1975 read with section 5 of the Integrated Goods and Service Tax Act, 2017," the Department of Revenue has said in a notification.
A SEZ area is considered to be a foreign territory for trade operations and duties, and is mainly set up for promoting exports.
Exports from SEZs grew by about 12 per cent to Rs 5.24 lakh crore in 2016-17. The shipments from these zones in 2015 -16 were aggregated at Rs 4.68 lakh crore.
Till May 1, the government had approved as many as 421 zones. Out of this, 218 are operational.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.