Q. With reference to Domestic Tariff Area (DTA), consider the following statements:

1. DTA refers to whole of the country except the SEZs (Special Economic Zones).
2. DTA also includes the continental shelf and the territorial waters.
3. All goods and services supplied to SEZs from DTA are considered as imports.
4. All goods and services supplied to DTA from SEZs are considered as exports.

Which of the statements given above is/are correct?
Answer: Only 1 & 2
Notes: A Special Economic Zone (SEZ) is a duty-free area within a country's borders, treated as foreign for trade, tariffs, and duties. The Domestic Tariff Area (DTA) encompasses the entire country except SEZs, including the continental shelf and territorial waters. Goods and services from SEZs to DTA are treated as imports, subject to Basic Customs Duty and Countervailing Duty. Conversely, supplies to SEZs are classified as exports and are exempt from GST.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.