LatestGoods & Service Tax (GST) 1 October 2026
SEZ Exit Reveals Hidden Tax Traps for Transitioning Firms
Companies moving out of Special Economic Zones face a maze of tax complications, including irreversible loss of pre‑GST VAT and excise benefits, retrospective demands for service tax exemptions, and complex GST compliance requirements. The article outlines practical steps to navigate these hidden liabilities and avoid costly penalties during the transition period.
Companies exiting SEZs must brace for several tax setbacks.
- VAT & excise: Pre‑GST benefits may be unrecoverable, creating a direct cost impact.
- Service tax: Authorities can retroactively claim exemptions, adding compliance risk.
- GST compliance: New filing obligations and potential audits increase administrative burden.
For a detailed guide on managing these issues, see the full article at Mondaq.
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