NEW DELHI: The government may have to amend the
SEZ Act 2005 to align it with the Goods and Services Tax (GST) law so that central excise and service tax benefits can be extended to developers and entrepreneurs.
The Commerce Ministry is in the process of preparing a note on the changes required in the Special Economic Zone (SEZ) Act, an official said.
The duty drawback norms, under which exporter is compensated for duties suffered during the course of production of goods, too would be required to be aligned with the new indirect tax regime.
Under the present norms, units in the SEZ get exemption from service tax and the developers get exemption from customs/excise duties for development of zones for authorized operations.
"Section 26 of the SEZ Act has to be amended to align it with the GST law. There is also a meeting tomorrow with the customs authorities to discuss the movement of goods to and from SEZs in the context of GST," the official added.
The section talks about exemptions, drawbacks and concessions to every developer and entrepreneur.
Source : timesofindia.indiatimes.com