Special Economic Zones (SEZs) - #SectorUpdates

The revamp of Special Economic Zones (SEZs) through the Development of Enterprise and Service Hub (DESH) Bill will come with a fiscal package, including a possible freeze on direct taxes at 15% for units and hubs until 2032 in case of greenfield and brownfield investment. The plan envisages deferment of basic customs duty and integrated GST (IGST) on imported raw materials. In case of exports, IGST may be waived, but sales to the domestic tariff area will require an exporter to pay basic customs duty on the raw materials and IGST on the finished products. States will have the option to offer incentives. As part of the revamp the Commerce Ministry is looking at creating mega manufacturing and service hubs. The proposed regulation will apparently focus on easing compliance, single window clearance and providing autonomy to local authorities. This will undoubtedly be a big step towards building a self reliant India.

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