https://www.taxtmi.com/caselaws?id=770649 Gujarat HC held that supply of branded tobacco products by manufacturers to merchant exporters qualifies as export of goods under IGST Act, constituting zero-rated supply. While petitioners remain liable to pay 160% compensation cess in absence of specific exemption notification, the court found this levy causes working capital blockage and is revenue neutral since merchant exporters can claim refunds. The court kept the cess levy in abeyance and referred the matter to GST Council to consider granting exemption from compensation cess on supplies to merchant exporters, similar to GST/IGST exemptions limited to 0.1%. Petition allowed by way of remand. en-us Fri, 09 May 2025 00:00:00 +0530 Fri, 06 Jun 2025 19:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770649 Gujarat HC held that supply of branded tobacco products by manufacturers to merchant exporters qualifies as export of goods under IGST Act, constituting zero-rated supply. While petitioners remain liable to pay 160% compensation cess in absence of specific exemption notification, the court found this levy causes working capital blockage and is revenue neutral since merchant exporters can claim refunds. The court kept the cess levy in abeyance and referred the matter to GST Council to consider granting exemption from compensation cess on supplies to merchant exporters, similar to GST/IGST exemptions limited to 0.1%. Petition allowed by way of remand. Case-Laws GST Fri, 09 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770649