Supplies to SEZs on par with Exports

The GST council also decided to make the tax treatment of items produced in special economic zones (SEZs) similar to that on exports. Procurement of supplies by SEZs will be zero-rated. In the earlier draft, SEZs would have had to pay the tax and then claim a refund. Paying the duties first and then seek refund would lead to hardship to the SEZ sector as their huge amount of working capital would…