Exemption on VAT/CST for goods manufactured for Export

[Samir Banerjee]

If a manufacture procure raw material, capital goods that are used to manufacture of goods for export. Is there any provision that (a) manufacturer of such goods could procure raw material & capital goods with upfront VAT & CST exemption (b) if manufacture needs to pay VAT & CST, can he claim refund of the same. Please let me know provision for both situation with procedure to avail the full exemption

AI Summary

Clarification on VAT and CST Exemptions for Manufacturers: Upfront Exemptions or Refunds for Export Inputs? A query was raised regarding the VAT and CST exemptions for manufacturers procuring raw materials and capital goods for export. The inquiry sought clarification on whether manufacturers could obtain these goods with upfront VAT and CST exemptions or claim refunds if taxes were paid. Responses indicated that state-specific VAT laws allow for procuring inputs without VAT payment through prescribed forms or claiming refunds during audits or assessments. However, CST paid under the CST Act, 1956, is a cost, although a concession rate of 2% is available with a C form. The responses were confirmed as correct by another participant.