SPECIAL ECONOMIC ZONE
Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and is deemed to be foreign territory for the purposes of trade operations and duties and tariffs. It is usually known as 'deemed foreign territory' with tax holidays, exemption from duties for export and import, world level economic and social infrastructure for production and augmentation of export activities within the territory along with facilities like abundant and relatively cheap labour, strategic location and market access etc.
Any private/public/joint sector or state government or its agencies or a foreign agency can set up an SEZ.
The Special Economic Zones Policy was announced in April 2000 with the objective of making the Special Economic Zones an engine for economic growth, supported by quality infrastructure and an attractive fiscal package both at the Central and State level with a single window clearance.
The SEZ Act, 2005, supported by SEZ Rules, came into effect on February 10, 2006. The main objectives of the SEZ Act are:
All export of goods/ services and supplies of goods/ services made to a SEZ are chargeable to IGST, however, these supplies shall be treated as zero-rated supplies under GST.
Any procurements (of raw material, goods or services) made by SEZ from outside India for its authorized operations have been exempted from Basic Customs Duty (BCD) & IGST both.
Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and is deemed to be foreign territory for the purposes of trade operations and duties and tariffs. It is usually known as 'deemed foreign territory' with tax holidays, exemption from duties for export and import, world level economic and social infrastructure for production and augmentation of export activities within the territory along with facilities like abundant and relatively cheap labour, strategic location and market access etc.
Any private/public/joint sector or state government or its agencies or a foreign agency can set up an SEZ.
The Special Economic Zones Policy was announced in April 2000 with the objective of making the Special Economic Zones an engine for economic growth, supported by quality infrastructure and an attractive fiscal package both at the Central and State level with a single window clearance.
The SEZ Act, 2005, supported by SEZ Rules, came into effect on February 10, 2006. The main objectives of the SEZ Act are:
- Generation of additional economic activity;
- Promotion of exports of goods and services;
- Promotion of investment from domestic and foreign sources;
- Creation of employment opportunities; and
- Development of infrastructure facilities.
All export of goods/ services and supplies of goods/ services made to a SEZ are chargeable to IGST, however, these supplies shall be treated as zero-rated supplies under GST.
Any procurements (of raw material, goods or services) made by SEZ from outside India for its authorized operations have been exempted from Basic Customs Duty (BCD) & IGST both.
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