Background
The Special Economic Zone (SEZ) regime, which
was introduced in 2005 to promote exports and improve balance of
payments, became less lucrative with sunset of income tax benefits
granted thereunder. In view thereof and with an objective of
unfettering the exporters from procedural hindrances, the
Hon'ble Finance Minister, in her budget 2022 speech,
announced replacement of this framework by September 2022.
Pending this revision and to suit the hybrid working model
adopted by the IT/ITES globally, the Ministry of Commerce and
Industry, has amended the existing Special Economic Zone Rules,
2006 vide the SEZ (Third Amendment) Rules 2022 dated 14
July 2022. In terms of this amendment, the existing Rule 43 has
been amended and a new Rule 43A, to permit the IT/ ITES SEZ units,
to implement hybrid working upon application.
