VAT on SEZ unit

[Girish Mani]

Please advise whether CST is levieble on sale by SEZ Unit to DTA under inter state trade course

REgards

Girish Mani

AI Summary

SEZ to DTA Sales Seen as Imports; CST Not Applicable, Customs Duties Apply Instead A discussion on a forum addressed the applicability of Central Sales Tax (CST) on sales from Special Economic Zone (SEZ) units to Domestic Tariff Area (DTA) under interstate trade. One participant clarified that SEZs are treated as foreign territories within India, and CST is generally not applicable to SEZ sales. Another participant argued that CST might be chargeable when goods are cleared from SEZ to DTA, suggesting that customs duties, including Special Additional Duty (SAD), would apply instead. The consensus leaned towards treating such transactions as imports, subject to applicable customs duties rather than CST.