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

[Ganeshan Kalyani]

SEZ - Special Economic Zone is treated as if it is a foreign country within India. Such units receive tax incentives. One such benefit is CST. CST is not applicable on SEZ sale.

[MUKUND THAKKAR]

CST is chargable according to me if goods celared from SEZ to DTA, other wise may be time of audit dept may ask to pay 4%SAD.

[DR.MARIAPPAN GOVINDARAJAN]

I think that the views of Shri Mukund is correct.

[Ganeshan Kalyani]

Thanks for information.

[PARTHASARATHY V]

While clearing SEZ to DTA it will be treated as Imports from other countries, hence all customs duties will be applicable including SAD. (SAD in lieu of CST/LST). Hence no CST / LST chargeable separately.

[Ganeshan Kalyani]

Thank you sir.

AI Summary

CST applicability on SEZ-to-DTA sales: treated as imports so customs duties including SAD apply, not separate CST.
Whether Central Sales Tax (CST) applies to sales by a Special Economic Zone unit to the Domestic Tariff Area is disputed: one view treats SEZs as foreign territory so CST is not applicable; another suggests CST may be chargeable or authorities may require payment of Special Additional Duty (SAD). An administrative stance treats SEZ-to-DTA clearances as import-like, applying customs duties including SAD in lieu of separate CST/LST.