SEZ vs SAD

[Mridul Sethi]

Is Domestic sales by SEZ units will exempt from SAD? Pls clear it.

AI Summary

Domestic sales by SEZ units are exempt from Special Additional Duty, but VAT or CST applies in DTA sales. A user inquired whether domestic sales by Special Economic Zone (SEZ) units are exempt from Special Additional Duty (SAD). The response clarified that such sales are indeed exempt due to a notification. It was explained that in Domestic Tariff Area (DTA) sales, Value Added Tax (VAT) or Central Sales Tax (CST) must be paid, and this presumptive tax serves as a substitute for sales tax.