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?

AI Summary

Debate Over Compensatory Cess on Exported Cars Under IGST Section 16(3)(b): Is Cess Applicable or Refundable? A discussion on a forum addressed whether compensatory cess is applicable on the export of motor cars when exporters opt for payment of Integrated Goods and Services Tax (IGST) under section 16(3)(b) of the IGST Act. One participant opined that cess is applicable as exports are considered inter-State supply. Another stated that no cess should be charged on exports, but the refund procedure is unclear. A third participant agreed that cess should not be charged, as exports are zero-rated and refunds can be claimed.