A commerce ministry-appointed panel has recommended that the Board of Approval (BoA), the highest decision making body for special economic zones (SEZs), should be accorded extra powers to exempt units and developers from certain rules to promote these zones. Justifying its proposal for change, the panel said that under the current SEZ rules, the BoA has no power to relax any rule. It also said that even when the BoA considers it appropriate, it has to take approval of commerce and industry minister. Therefore, it pointed that wherever BoA feels that there is genuine hardship to the trade and industry and relaxation in SEZ rule is required, it should be empowered to do so.
In order to align the SEZ Rules, 2006 with the Goods and Services Tax (GST) regime as well as for removal of various difficulties faced, a committee under the Chairmanship of Dr. L. B. Singhal, Development Commissioner, Noida, SEZ was constituted by the Department of Commerce, Ministry of Commerce and Industry to review the SEZ Rules, 2006 and to make necessary recommendations. The committee further suggests submission of GST registration certificate in place of sales tax registration, along with obtaining national security clearance as per guidelines issued by the home affairs ministry.
Besides, it has asked for setting up of an SEZ Rules Interpretation Committee to help in ease of operations, as well as suggestions to reduce paper work for setting up of SEZ units. India’s exports from SEZs jumped 15.4% to Rs 1.35 lakh crore during the first quarter (April-June) of the financial year 2017-18. Besides, till September 7, the government has approved as many as 424 zones, of which 222 are operational.
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