GST Council recommends Retrospective Exemption from Compensation Cess leviable on Imports in SEZ by SEZ Unit/developer for Authorised Operations\r\n\r\n

The 53rd GST Council Meeting has concluded with significant decisions, including changes to GST laws affecting Special Economic Zones (SEZs). The Council recommended a retrospective exemption from compensation cess on imports into SEZs by SEZ units or developers, effective from July 1, 2017. Additionally, amendments to the IGST Act's Section 16 and the CGST Act's Section 54 were proposed to limit IGST refunds when export duty is payable. \r

This change restricts refunds for goods subject to export duty, regardless of whether taxes were paid upfront, and extends to supplies to SEZ developers or units for authorized operations. The Council also introduced a new optional FORM GSTR-1A, allowing taxpayers to amend or add details in FORM GSTR-1 before filing FORM GSTR-3B, ensuring accurate tax liability calculation.