Vibrant Gujarat Global Investment Summit

Context (TH): PM inaugurates the 10^th Vibrant Gujarat Global Investment Summit in GIFT City, Gujarat.
The focus will be on futuristic technologies like semiconductors, green hydrogen, e-mobility, space manufacturing, renewable energy, financial services, and technology.

Gujarat International Finance Tec-City (GIFT City)

It is a multi-service Special Economic Zone (SEZ) with an International Financial Services Centre.

SEZ is an area designated to set up units to carry out specific manufacturing and trading activities and provide certain services.
It is considered a foreign territory where the goods and services going into the SEZ are considered exports, and goods and services coming from the SEZ are imports.

It is a multi-service SEZ in Gift City.
IFSC is India’s first Offshore financial centre.
They deal with the cross-border flow of money and financial products and services.

The key institutions permitted to set up an IFSC unit are the Banking sector, Insurance sector, and Capital Markets.

100% tax exemption for 10 years out of 15 years (IFSC Unit has the flexibility to select any 10 years out of 15 years block).
Interest income paid to non-residents on money lent to IFSC units is not taxable.
Long-term Bonds & Rupee-denominated bonds listed on IFSC exchanges are taxable at rate of 4%.
Transfer of specified securities listed on IFSC exchanges by a non-resident not treated as transfer – Gains accruing thereon not chargeable to tax in India.

GST does not apply to services received by the unit in IFSC, provided to IFSC/SEZ units, and offshore clients.
GST applies to services provided to Domestic Tariff Areas.
GST does not apply to transactions carried out in IFSC exchanges.

State Subsidies – Lease rental, PF contribution, electricity charges.
There is an exemption from Security Transaction Tax (STT), Commodity Transaction Tax (CTT), and stamp duty on IFSC exchanges.