Compensatory Cess

[SAKTHIVEL K]

Manufacturer of motor car exports cars opting export on payment of IGST u/s 16(3)(b) of IGST Act. Is compensation cess payable on export of cars if exporter opted export on payment of IGST?

[DR.MARIAPPAN GOVINDARAJAN]

Export amount inter-State supply. In my view cess is applicable.

[Kishan Barai]

No Cess could be charged on Exports, but it's refund procedure has yet to be cleared​ by Government.

[subramanian vijayakumar]

Yes cess couldnot be charged. For exports it is zero rated and they would claim refunds suppose to be my view expert's

AI Summary

Compensatory cess on exports: dispute over applicability when exporter opts to pay IGST, with views divided. Whether compensatory cess applies to motor car exports when the exporter opts to export on payment of IGST is contested: one view treats the export as an inter state taxable supply subject to cess, while other contributors state exports are zero rated, not cess liable, and note uncertainty about the refund procedure.