CBIC exempts Compensation Cess on SEZ Units or Developers Imports on GST council Recommendation

The GST Council has approved an exemption of Compensation Cess on imports by SEZ units or developers, effective from July 1, 2017. This decision, recommended by the GST Council, aims to facilitate authorized operations within SEZs. The exemption applies specifically to Compensation Cess, which is typically levied to compensate states for revenue losses due to the implementation of GST. This move is part of a broader set of recommendations made during the 53rd GST Council meeting, which included changes to tax rates on various goods and services to simplify compliance and promote economic activities in specific sectors.