CBIC provides exemption from Compensation Cess leviable on all goods imported by a unit or a developer in the Special Economic Zone for authorised operations, from the whole of goods and service tax compensation cess leviable thereon under sub-section (9) of section 3, of Customs Tariff Act, 1975 (51 of 1975) read with sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017). Notification No. 27/2024-Customs | Dated: 12th July, 2024. Exemption is provided as per 53rd GST Council meeting recommendation to exempt Compensation Cess leviable on the imports in SEZ by SEZ Unit/developer for authorised operations from 1st July, 2017.
Notification No. 27/2024-Customs, issued by the Ministry of Finance, Department of Revenue, grants a significant exemption under the Customs Act, 1962, and the Customs Tariff Act, 1975. This exemption pertains to goods imported by units or developers in Special Economic Zones (SEZs) for authorized operations.
The notification, G.S.R. 394(E), exempts all imported goods by SEZ entities from the goods and services tax compensation cess. This exemption is crucial as it aims to enhance the ease of doing business within SEZs, aligning with the government’s broader economic policies. The exemption applies specifically to goods imported for authorized operations within SEZs, providing relief from the cess leviable under the Customs Tariff Act, 1975, read with the Goods and Services Tax (Compensation to States) Act, 2017.
This move is expected to boost manufacturing and trade activities within SEZs, promoting investments and job creation. It underscores the government’s commitment to supporting SEZs as key engines of economic growth by reducing tax burdens on imported inputs essential for their operations.
Effective from the 15th of July, 2024, this notification marks a significant policy shift aimed at fostering a conducive environment for SEZs in India.
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MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 27/2024-Customs | Dated: 12th July, 2024
G.S.R. 394(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with sub-section (12) of section 3, of Customs Tariff Act, 1975 (51 of 1975), the Central Government, on the recommendations of the Council, on being satisfied that it is necessary in the public interest so to do, hereby exempts all goods imported by a unit or a developer in the Special Economic Zone for authorised operations, from the whole of goods and service tax compensation cess leviable thereon under sub-section (9) of section 3, of Customs Tariff Act, 1975 (51 of 1975) read with sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017).
2. This notification shall come into force from the 15th July, 2024.
[F. No.190354/94/2024-TRU]
NITISH KARNATAK, Under Secy.
