Supply of Goods in SEZ Warehouses or FTWZs before Export Clearance or DTA deemed exempt from GST: Budget 2025

The Union Budget 2025 introduced a change to the Goods and Services Tax (GST) treatment for the supply of goods in Special Economic Zones (SEZs) or Free Trade and Warehousing Zones (FTWZs) before export clearance. The budget proposed that such goods will be deemed exempt from GST, even if they are not yet exported. This change intends to ease compliance and improve cash flow for exporters, as it eliminates the need to pay GST upfront before the goods are cleared for export. It will also simplify the process for businesses involved in warehousing and export activities, helping them reduce operational costs and streamline the tax processes associated with these transactions.