India to update SEZ Act 2005 aligning services with GST
India's government is planning a big update to the Special Economic Zones (SEZ) Act, 2005.
Instead of tying services to exports, it is shifting the definition to match GST law, focusing on what companies actually do, not just how much they export.
This move is part of the reform agenda that follows the Budget 2026-27 measures and is expected to cut through red tape for service-sector units.
SEZ reforms aid rupee payments, IT/ITeS
The changes should help businesses that deal in rupee payments, especially IT and IT-enabled services (IT/ITeS), which have struggled with old rules connecting services to foreign exchange earnings.
With 276 SEZs already running and plans to attract fresh investment in emerging areas like data centers, these reforms could boost India's status as a global business hub.