The Ministry of Finance (MoF) on January 16, 2025, issued a notification to exempt the intra-state and inter-state supply of taxable goods by a registered supplier to a registered recipient for export from the levy of compensation cess under section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 as is in excess of the amount calculated at the rate of 0.1 per cent., subject to fulfilment of the following conditions, namely: -
• the registered supplier shall supply the goods to the registered recipient on a tax invoice;
• the registered recipient shall export the said goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier;
• the registered recipient shall indicate the Goods and Services Tax Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be;
• the registered recipient shall be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce;
• the registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier;
• if the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported;
The registered supplier shall not be eligible for the above-mentioned exemption if the registered recipient fails to export the said goods within a period of ninety days from the date of issue of the tax invoice.
This notification shall come into force with immediate effect.
[Notification No. 01/2025-Compensation Cess (Rate)]
