Government Allows SEZ Export Units To Sell Domestically At Concessional Rates
ECONOMY & POLICY

Government Allows SEZ Export Units To Sell Domestically At Concessional Rates

The government has allowed export oriented units in Special Economic Zones (SEZs) to sell products in the Domestic Tariff Area (DTA) at concessional duty rates, following an announcement in the Budget 2026 presented by Finance Minister Nirmala Sitharaman. The Central Board of Indirect Taxes and Customs (CBIC) introduced the measure as a special one time relief to help manufacturing units in SEZs facing disruptions in global trade. Officials said the step is designed to keep export capacity operational while easing input constraints for domestic firms.

The concessions will be available for one year from April one, 2026 to March 31, 2027 and apply only to eligible units that began production on or before March 31, 2025. The relief requires that goods for which benefit is claimed have undergone minimum 20 per cent value addition over inputs and that concessional sales respect conditions meant to preserve fair competition. The Ministry of Finance said the measures were calibrated to maintain a level playing field for units outside SEZs and to prevent diversion of export oriented production.

The DTA sales at concessional rates by eligible SEZ units shall not exceed 30 per cent of the highest annual Free on Board (FOB) value of exports in any of the three immediately preceding financial years, according to the ministry release. Sources in the ministry described the concession as a one time, time bound relief driven by immediate external challenges rather than a permanent policy shift. The CBIC will administer the window and supervise compliance with the threshold and value addition norms.

Analysts said the change has a dual benefit by allowing SEZ infrastructure to remain utilised amid weakening external demand and constrained supply routes while giving domestic industry access to capacity that could reduce reliance on delayed or costly imports. They added that the time bound measure aims to shore up manufacturing resilience until global trade conditions stabilise.

The government has allowed export oriented units in Special Economic Zones (SEZs) to sell products in the Domestic Tariff Area (DTA) at concessional duty rates, following an announcement in the Budget 2026 presented by Finance Minister Nirmala Sitharaman. The Central Board of Indirect Taxes and Customs (CBIC) introduced the measure as a special one time relief to help manufacturing units in SEZs facing disruptions in global trade. Officials said the step is designed to keep export capacity operational while easing input constraints for domestic firms. The concessions will be available for one year from April one, 2026 to March 31, 2027 and apply only to eligible units that began production on or before March 31, 2025. The relief requires that goods for which benefit is claimed have undergone minimum 20 per cent value addition over inputs and that concessional sales respect conditions meant to preserve fair competition. The Ministry of Finance said the measures were calibrated to maintain a level playing field for units outside SEZs and to prevent diversion of export oriented production. The DTA sales at concessional rates by eligible SEZ units shall not exceed 30 per cent of the highest annual Free on Board (FOB) value of exports in any of the three immediately preceding financial years, according to the ministry release. Sources in the ministry described the concession as a one time, time bound relief driven by immediate external challenges rather than a permanent policy shift. The CBIC will administer the window and supervise compliance with the threshold and value addition norms. Analysts said the change has a dual benefit by allowing SEZ infrastructure to remain utilised amid weakening external demand and constrained supply routes while giving domestic industry access to capacity that could reduce reliance on delayed or costly imports. They added that the time bound measure aims to shore up manufacturing resilience until global trade conditions stabilise.

Next Story
Infrastructure Urban

TCC Concept Reports 480% Revenue Growth in Q1FY27

TCC Concept  has reported strong financial performance for the first quarter of FY27, with revenue from operations rising 480% year-on-year to Rs 1,283 million.The company’s EBITDA increased 158% year-on-year to Rs 463 million, with an EBITDA margin of 36.1%. Profit after tax (PAT) grew 34% year-on-year to Rs 126 million during the quarter.The growth was supported by continued execution across TCC’s integrated ecosystem spanning consumer commerce, supply chain, digital infrastructure, cloud, PropTech and AI-led platforms.Pepperfry continued to strengthen its omnichannel expansion stra..

Next Story
Real Estate

ANHAD Developers Appoints Akash Lakhina as Sales Head

ANHAD Developers has appointed Akash Lakhina as Head of Sales, Marketing and CRM as the company strengthens its leadership team ahead of its entry into Gurugram’s premium residential market.The appointment follows Adil Altaf taking charge as CEO of the group’s real estate vertical. Lakhina will be responsible for driving the company’s sales, marketing and customer relationship initiatives for its upcoming luxury developments.With nearly three decades of professional experience, Lakhina brings expertise across multiple industries, including over a decade in luxury real estate. His experie..

Next Story
Real Estate

BXB Estates Records AED 110 Million Luxury Villa Sale in Dubai

BXB Estates has completed a record AED 110 million residential transaction at Jumeirah Golf Estates, marking the highest-value residential sale in the history of one of Dubai’s most prestigious communities.The transaction, negotiated by Alfie Tabrez, Managing Partner, BXB Estates, surpasses the previous record of AED 58 million for a completed ready villa.The six-bedroom luxury residence features a built-up area of 21,714 sq ft on a 15,873 sq ft plot. The property includes nine bathrooms, four living lounges, a home office, bar lounge, private cinema and rooftop terrace. Its wellness facilit..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement