The government has announced special relief measures in the form of one-time waiver of certain fees for Special Economic Zones (SEZs). This step has been taken to support the units working in these sectors amid global uncertainty. This exemption will be available only to those units which started production of goods on or before March 31, 2025. The Revenue Department has given this information in the notification dated March 31. The units will also have to prove that the products on which this discount is being availed fulfill all the prescribed conditions. Also, the products for which exemption will be claimed must be manufactured in an SEZ unit and have at least 20 percent value addition.
Finance Minister Nirmala Sitharaman had proposed this one-time special measure while presenting the Budget 2026-27, so that eligible manufacturing units of SEZs could get the facility to sell goods in the domestic market (DTA) at lower duty. This step was taken to overcome the problem of non-utilization of production due to disruption in global trade.
He had said that the volume of domestic sales would be limited to a fixed portion of their exports. This was a long standing demand of these sectors, as they were not able to export their surplus production due to global uncertainties. SEZ units are allowed to sell goods in the domestic market, but for this they have to pay import duty.
On this decision, Krishna Arora, partner and head of indirect tax and investment advisory department of accounting and consulting company Grant Thornton India, said that the concessional fee ranges between 6.5 percent to 12.5 percent in different sectors. This includes reduction in both BCD and AIDC, which vary by product. He said that currently this benefit is for 2026-27, but considering the current uncertain situation, it can be extended for a year or more.
Commerce and Industry Minister Piyush Goyal had said on February 1 that many units have excess production capacity and this decision will help them sell in the domestic market at lower duties, which will also reduce imports. These areas are considered overseas territories for customs and import-export laws and domestic sales without duty are prohibited.
Companies operating in SEZs are allowed to import raw materials and components without duty, but with the condition that the finished goods will be exported outside the country. However, they can also sell in the domestic market by paying necessary fees. Total exports from these sectors increased by 7.37 percent to US $ 172.27 billion in 2024-25. There are 276 operational SEZs in the country, in which 6,279 units are functioning.
