What benefits are available to a new SEZ unit I want to start in Ranchi under the state special economic zone policy?

Detailed Legal Analysis

A new Special Economic Zone (SEZ) unit in Ranchi can avail numerous benefits under the state and central government policies designed to promote industrial growth and economic development.

Key benefits include:

• Tax Incentives: SEZ units are entitled to various tax exemptions, including:
  • 100% exemption on income tax for the first five years.
  • 50% exemption for the next five years.
  • In the following years, a 50% exemption on the reinvested profits.
• Customs Duty Exemptions: SEZ units are exempt from customs duties on import of goods for development, operation, and maintenance of the SEZ.
• Central Sales Tax (CST) Exemptions: SEZ units are not liable to pay CST on sales made to other states.
• Goods and Services Tax (GST) Benefits: SEZ units can claim refunds on GST paid on inputs and input services.
• Single Window Clearance: The SEZ Act, 2005 provides a streamlined process for obtaining necessary approvals and clearances from various government departments.
• Infrastructure Support: The government provides assistance in the form of developed plots, utilities, and connectivity to transport networks.
• Employment Generation Incentives: Special incentives for units generating employment, such as skill development programs and subsidies for hiring local labor.

In addition to the above benefits, the Jharkhand State Government has its own SEZ policy which may provide further incentives. The Jharkhand Industrial Investment Promotion Policy emphasizes:

• Financial assistance for infrastructure development.
• Subsidies on land and utilities to promote establishment of industries.
• Support for promoting export through various channels.

To establish an SEZ unit, you need to follow these steps:

• Submit an application to the Department of Commerce, Government of India.
• Obtain necessary approvals regarding land acquisition and environmental clearances.
• Register with the SEZ authority once the approvals are in place.

Refer to the Special Economic Zones Act, 2005, and the Jharkhand Industrial Investment Promotion Policy for detailed guidelines and eligibility criteria.