The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include :
(i) Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
(ii) 100% Income Tax exemption on export income for SEZ units under Section 10‌AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter, and 50% of the ploughed back export profit for next 5 years.
(iii) Exemption from Central Sales Tax, exemption from Service Tax and exemption from State sales tax. These have now subsumed into GST and supplies to SEZs are zero rated under the IGST Act, 2017.
(iv) Single window clearance for Central and State level approvals.
(v) Flexibility in labour laws also attracts foreign investments.