Relevance of Zero rated supply of goods in GST

Relevance of Zero rated supply of goods under GST

 

The details about Relevance of Zero rated supply of goods under GST are explained here. 

Zero rated supply of Goods

“Zero rated supply of goods” means any of the following supplies of Goods namely:––

  1. Export of Goods or both;  or
  2. Supply of Goods to a Special Economic Zone developer or a Special Economic Zone unit.

Relevance of Zero rated supply of goods in GST:

Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Service Tax Act, credit of input tax may be availed for making zero-rated supplies; notwithstanding that such supply may be an exempt supply.

A registered person making zero rated supply shall be eligible to claim refund 30 under either of the following options, namely:––

He may supply Goods under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of  integrated tax and claim refund of  unutilised input tax credit;  or

He may supply Goods subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or Goods or both supplied, in accordance with the provisions of section 54 of the Central Goods and Goods Tax Act or the rules made thereunder.

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