Budget 2022: SEZ Act getting ready for a makeover : Rashtra News #Budget #SEZ #Act #ready #makeover The government has begun work to replace the Special Economic Zones (SEZ) Act with a new legislation that will cover industrial enclaves and revive these zones as engines of growth. The ministries of commerce and industry and finance
India Business News: The Andhra Pradesh High Court has ruled that SEZ units are not exempt from compensation cess under GST. This decision may impact imports by SEZ units and could lead to GST demands. The industry may seek a retrospective exemption from GST compensation cess for imports by SEZ units.
Flexibility to demarcate part area without significant cost implications is a positive. The changes made to the Special Economic Zones Act, 2005 (SEZ Act) on December 6, 2023, by the Department of Commerce, are anticipated to greatly decrease the vacant office spaces in major cities of India due to increased leasing activities.
The ministries of finance and commerce & industry have been in discussions on the DESH bill for more than a year. Partial de-notification of zones, sales to DTA, concessional corporate tax for them and removal of net foreign exchange earning requirement have been some of the sticky issues between the two ministries.