Deemed Credit of SEZ goods

[Pranay Jain]

Whether deemed credit of 40% in CSGT will be available to first stage dealer on SEZ goods in his stock on appointed date 01st Jul17.

AI Summary

Eligibility of 40% Deemed Credit Under CGST for SEZ Goods: Clarification on Claims by First and Second-Stage Dealers A query was raised regarding the eligibility of a 40% deemed credit under CGST for SEZ goods held by a first-stage dealer as of July 1, 2017. Govind Gupta responded that if goods have not been subject to tax, credit should not be available; however, GST law aims to level the playing field for traders and manufacturers. Pranay Jain questioned if a second-stage dealer could claim this credit for SEZ goods received, as it is challenging to identify whether the goods are excise-paid or exempt.