Zero-rated Sales 17. Where any taxable goods are exported outside the territory of India or are supplied in the course of such export falling within the scope of section 5 of the Central Sales Tax Act, 1956, such sales shall be zero-rated. On such sale, no output tax is payable by any person: Provided that a taxable person making zero-rated sale shall be eligible for input tax credit in relation to such sales. Where any taxable goods are sold to a unit within the Special Economic Zone or to a develpoer or where any inter-unit transaction of goods within the Special Economic Zone is made, such sales shall be zero-rated. On such sale, no output tax is payable by any person: Provided that a taxable person making Zero-rated sale shall be eligible for input tax credit in relation to such sale: Provided further that the sale made to aforesaid unit or to a developer or an inter-unit transaction shall be Zero-rated subject to production of certificate in such form as may be prescribed. Where any unit referred to in sub-section(2) makes sales directly to a customer, the provisions of Zero-rated sales specified in sub-section(2) shall not be applicable. Explanation:- |