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The Finance Bill, 2021, proposes three amendments to Section 16 of the Integrated Goods and Services Tax (IGST) Act, 2017, that are of interest to exporters. Two of these seek to legitimise restrictions introduced through the Central Goods and Services Tax (CGST) Rules, 2017, and one intends to bring in fresh restrictions.
The first amendment intends to zero-rate supplies of goods or services to special economic zone (SEZ) developers or SEZ units only when the supplies are for authorised operations. In fact, Rule 46 and Rule 89 of the CGST Rules already refer to supplies to SEZ developers/units for authorised operations. This amendment only aims to avoid any dispute because the Rules impose restrictions or stipulate requirements that the Act does