18-July-2026
Commercial Laws
 
Government plans to change the definition of ‘services’ under SEZ Act
17-Jul-2026

The government is likely to broaden the definition of services under the Special Economic Zones (SEZ) Act and align it with the Goods and Services Tax (GST) law, to remove the long-standing restriction that requires service exports from SEZs to earn foreign exchange, confirmed a government official aware of the matter. Government sources said that the proposed amendment would modify the existing provision in the SEZ Act that mandates payment for services in foreign currency. Thus, service firms in the SEZ units will be able to receive payments in Indian rupees for services supplied to the Domestic Tariff Area (DTA).

News Source:- https://www.newindianexpress.com/business/2026/Jul/16/government-plans-to-change-the-definition-of-services-under-sez-act