Special Economic Zones (SEZ) & IFSC
Evaluating export-oriented enclaves and the Gujarat International Finance Tec-City.
SEZ vs DTA Assessment
| Metric | SEZ Unit | Domestic Tariff Area |
|---|---|---|
| Customs Duty on Imports | Exempt | Applicable |
| GST on Local Procurement | Zero-rated | Applicable (Input Credit) |
| Domestic Sales | Pay full customs duty | Normal GST |
The Shift in SEZ Utility
Historically, SEZs offered a 15-year income tax holiday. That sunset clause took effect in 2020. Today, the primary benefit of an SEZ is indirect taxes—duty-free imports and zero-rated GST on local procurement.
If your manufacturing output is 100% for export, an SEZ remains viable. If you intend to sell into the Indian domestic market, an SEZ is highly restrictive, as selling into the Domestic Tariff Area (DTA) attracts full import duties.
GIFT City (IFSC)
The new frontier is the International Financial Services Centre (IFSC) in Gujarat. Aimed at financial services, tech, and aircraft leasing, it offers a 100% tax exemption for 10 out of 15 years, operating as a foreign territory for FEMA purposes.
Research Index
- Foreign Direct Investment (FDI) Policy Map
- Company Incorporation Timeline & Structure
- Corporate Tax & Transfer Pricing
- Production Linked Incentives (PLI)
- Industrial Corridors & Logistics
- Structuring Joint Ventures
- Profit Repatriation & Forex Laws
- Labor Codes & Employment Mandates
- Statutory Compliance Calendar
- State-Level Subsidies & Incentives
- Intellectual Property Protection
- Employment & Business Visas
- DPDP Act & Data Localization
- ESG & BRSR Mandates
- Return to Overview
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