relevance of secton 2(f)

[Arun Aggarwal]

Sir

I would like to know that is there any relevance of section 2(f) of central excise in the regime of GST for the manufaturer.

Specially for the area based exempted areas where all the benifits if any are given to the manufacturer only.

For reference Circular No.1060/9/2017-CX dt 27/11/2017

Arun

Arun

[KASTURI SETHI]

Section 2(f) of Central Excise Act, is not relevant now inasmuch as the concept of area based exemption does not exist. Such units are to pay GST and thereafter claim refund of GST paid. IT IS NOT EXEMPTION.

[Arun Aggarwal]

sir

But the claim after paying GST will be given only to manufactures.

Arun

[KASTURI SETHI]

Yes. I agree with you. Even in the present GST regime the term, "MANUFACTURER", is not out of scope though GST is on supply of goods and services. I mean to say whether this or that process amounts to manufacture or not, shall not be determinant factor. Ultimately goods to be completely manufactured/finished.

[Arun Aggarwal]

sir

It means again for the letigation on the defination of manufacturing with no 2(f) of central excise!!!!!

[KASTURI SETHI]

It means no litigation.

[Arun Aggarwal]

Thanks

[KASTURI SETHI]

Central Excise Act has been repealed. Despite saving Clause no litigation can be feared in this situation.

[Abhishek Panicker]

Really ?

AI Summary

Manufacturer definition under old excise law no longer controls GST liability; refunds replace area-based exemptions. The definition of manufacturer under the repealed Central Excise law is no longer determinative in the GST regime because GST taxes the supply of goods and services. Area-based excise exemptions have been displaced: affected units must pay GST and may pursue refunds under GST procedures rather than claiming excise exemption. Consequently, disputes hinging on the old concept of manufacture under section 2(f) are largely obviated by the repeal of the Central Excise Act and the different relief mechanisms under GST.