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Government May Issue Ordinance to Amend SEZ Act in Accordance With GST
June 28, 2017
Industry experts believe that the government will issue an ordinance within a week that will alter the Special Economic Zone (SEZ) Act so as to get it in line with the Goods and Service Tax regime that’s set to be launched on July 1.
Many elements of the SEZ Act are incompatible with the GST regime and thus need to be amended. For instance, Section 26 of the SEZ Act that concerns drawbacks, concessions, and exemptions provided to entrepreneurs and developers need to be modified.
SEZs, that are the export hubs of the country make up about 16% of the total outbound shipments and will be greatly affected by the GST regime.
