Gujarat HC Asks GST Council to Decide Leviability of Compensation Cess on Goods Supplied to Merchant Exporter

The Gujarat High Court has referred a significant matter concerning the applicability of compensation cess on supplies made by merchant exporters to the Goods and Services Tax (GST) Council for clarification. The court's decision to refer this issue to the apex GST policy-making body underscores the need for policy consistency and uniformity in the treatment of merchant exporters under the GST regime. While referring the matter, the High Court also granted interim relief to the affected exporters, providing a temporary respite from the uncertainty surrounding the levy of the compensation cess on their export supplies.