SEZs want CST sop on domestic sale

Written by Press Trust of India | New Delhi | Updated: Jul 1 2009, 05:03am hrs
Goods bought from special economic zones (SEZs) for use in the domestic market should be exempted from the Central Sales Tax in the lines of imports which are not levied CST, an industry body of SEZ developers has said.

The Export Promotion Council for EOUs and SEZs (EPCES) has raised the issue with the finance ministry and is expecting a favourable response in the Budget.

Imports into the country do not attract CST, and since SEZs are treated as an area outside the customs territory of the country, tax should not be applicable on goods bought from the SEZs by units in the Domestic Tariff Area (DTA), EPCES director-general LB Singhal said.