No exemption for SEZ units under the proposed Central Excise Bill
The proposed Central Excise Bill, 2024, does not exempt excisable goods produced or manufactured in a Special Economic Zone (SEZ) and brought to any other place in India from duty. Any exemption will need to be notified separately by the Central government, if deemed fit, says the Bill.
The move, if implemented, could curb misuse of incentives and alleged duty evasion at SEZ units. However, according to a senior government official, the Bill is not expected to be a part of the upcoming full Budget of the new government.
Currently, central excise duty is levied on a select list of goods — tobacco, crude oil, gasoline, diesel, natural gas, and air turbine fuel — while the majority of goods have transitioned to the goods and services tax (GST) regime.
