Export Promotion Council for EOUs and SEZs (EPCES) on Thursday sought to drum up support from the government with a view to boosting outbound shipments from special economic zones.
Council's Vice-Chairman Bhuvnesh Seth has asked for implementation of pre-GST regime system for special economic zones (SEZs) as these are considered as foreign land and would be equivalent to direct imports.
He demanded allowing refund of GST (Goods and Services tax) to SEZ units on the supplies made from domestic tariff area by suppliers without letter of undertaking.
Seth also said that annual increase of lease rent is additional burden on SEZ units in the present scenario of recession, especially when SEZ authorities have lot of reserves.
"In present circumstances, SEZ units are under pressure to compete in overseas market," he said in a statement.
Similarly, he sought support for export oriented units (EOUs) to encourage more entrepreneurs to join EOU scheme.
It is suggested that EOUs should be treated at par with SEZ by giving income tax benefits and infrastructure rebate, he added.
"Before the GST, EOUs were having exemption from customs and excise duties. At present IGST benefit is given to EOUs for short duration through issuance of notifications from time to time. It is requested to allow permanent IGST exemption as allowed prior to GST regime to attract fresh investment in EOU scheme," he said.
SEZs are major export hubs in the country as the government provides several incentives and single-window clearance system.
Exports from these zones stood at over Rs 7 lakh crore in 2018-19.
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