Applicability of VAT or CST - Sez unit

[madhavvan n]

A Unit in SEZ wants to sellits products manufactured in SEZ in domestic tariff area whether the unit has to charge VAT if it sells locally or CST if it sells interstate pls calrify and let me know circular / notification

[Rama Krishana]

In my view, supply from SEZ to DTA within the same state must constitute as local sale and the same transaction should be subject to local VAT if otherwise not exempted.

AI Summary

VAT applicability: sales from SEZ to domestic tariff area within the same state attract local VAT unless exempt. Supply of goods manufactured in a Special Economic Zone sold into the Domestic Tariff Area within the same state constitutes a local sale and, unless exempted, is subject to local Value Added Tax rather than Central Sales Tax; interstate transfers would invoke inter state tax treatment.