The CBIC has exempted the compensation cess on SEZ Units or Developers for authorised operations Imports on 53rd GST council Recommendation. The Central Board of Indirect Taxes and Customs, vide notification no. 27/2024-Customs dated 12th July 2024 have notified the same. The notification shall come into force on 15th July 2024.
The 53rd GST council meeting has recommended to exempt compensation on the imports in SEZ by SEZ Unit/developers for authorised operations w.e.f. 01.07.2017. Through this current notification, it has stated that :
“In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with sub-section (12) of section 3, of Customs Tariff Act, 1975 (51 of 1975), the Central Government, on the recommendations of the Council, on being satisfied that it is necessary in the public interest so to do, hereby exempts all goods imported by a unit or a developer in the Special Economic Zone for authorised operations, from the whole of goods and service tax compensation cess leviable thereon under sub-section (9) of section 3, of Customs Tariff Act, 1975 (51 of 1975) read with sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017).”
In addition, the GST council has also proposed an amendment in Section 16 of IGST Act and Section 54 of the Central Goods and Services Tax Act to curtail refund of Integrated Goods and Services Tax ( IGST ) in cases where export duty is payable.
Also read: CBIC notifies GST Exemption to Services Provided by Indian Railways and SPVs w.e.f. 15th July 2024
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