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Whether deemed credit is available in respect of goods purchased from tax free zones?

QuestionsCategory: GSTWhether deemed credit is available in respect of goods purchased from tax free zones?
AayushPareek Staff asked 1 week ago

Whether deemed credit is available in respect of goods purchased from tax free zones?

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1 Answers
TANI AGARWAL Staff answered 1 week ago

The deemed credit in terms of Rule 117(4) of the CGST Rules, 2017 (transitional provisions) read with Section 140(3) of the CGST Act, 2017 would be available in respect of the goods, which were not unconditionally exempt from the whole of the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil rated in the said Schedule. As the goods purchased from tax free zones were exempted from duty payment under a Notification issued under Section 5 of the Central Excise Act, 1944 and not Nil rated in the First Schedule to the Central Excise Tariff Act, 1985, the deemed credit would be available in respect of such goods held in stock on the appointed day.

 

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