Centre to Refund GST Cess on SEZ Imports and PDS Food Packs Retroactively

By: Admin July 09, 2024 Categories: GST Recent News

The Centre will refund the compensation cess imposed on imported goods under the Goods and Services Tax (#GST) to businesses operating in special economic zones (#SEZs) and their developers, effective from 2017. The Central Board of Indirect Tax and Customs has also directed the issuance of refunds for the 5% GST collected on food packages intended for the public distribution system (#PDS), potentially amounting to about ₹6,500 crore, according to sources familiar with the matter.

This move follows a recent GST Council decision that retroactively exempts SEZ units and developers from imports starting July 1, 2017, when GST was introduced. “Cess collected will be refunded, and any notices served to SEZ units or developers will be retracted,” a senior official told ET. These refunds are expected to be issued within the next six months, the official added.

The GST Council’s decision is significant in light of a January ruling by the Andhra Pradesh High Court.

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