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:-
(i) The expressions "unit" and "special Economic Zone" shall have the same meaning as has been assigned to these expressions in the punjab special economic zone Act,2009 (punjab Act 17 of 2009);
(ii) "developer" means a person or a body of persons, inculding a company, a firm or a government undertaking, which establishes, constructs, installs, operates, maintains or manages a part or whole of the infrastructure and other amenities in the special economic zone.