13 July 2017
INDIA: Supplies to Businesses in SEZs Exempted from Goods and Services Tax
Goods and services provided to or imported by businesses in India’s Special Economic Zones (SEZs) will be exempted from the Goods and Services Tax (GST), which came into effect across the country on 1 July. According to India’s Finance Ministry, services and supplies – both domestically procured and imported – will be zero-rated for export-processing activity in SEZs.
The government believes that the upfront exemption from GST will reduce the working capital requirements of businesses in SEZs, and boost their export production.