GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 01/2025-Compensation Cess (Rate)
New Delhi, the 16thJanuary, 2025
G.S.R. (E).-In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods andServices Tax Act, 2017 (12 of 2017), read with sub-section (1) of section 11 of the Goods and Services Tax(Compensation to States) Act, 2017 (15 of 2017) and sub-section (1) of section 6 of the Integrated Goods andServices Tax Act, 2017 (13 of 2017), read with sub-section (2) of section 11 of the Goods and Services Tax(Compensation to States) Act, 2017 (15 of 2017), the Central Government, on being satisfied that it isnecessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-state and inter-state supply of taxable goods (hereafter in this notification referred to as“the said goods”) by aregistered supplier to a registered recipient for export, from so much of the compensation cess leviable thereonunder section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), as is inexcess of the amount calculated at the rate of 0.1 per cent., subject to fulfilment of the following conditions,namely:
-(i) the registered supplier shall supply the goods to the registered recipient on a tax invoice;
(ii) the registered recipient shall export the said goods within a period of ninety days from thedate of issue of a tax invoice by the registered supplier;
(iii) the registered recipient shall indicate the Goods and Services Tax Identification Number ofthe registered supplier and the tax invoice number issued by the registered supplier in respect of thesaid goods in the shipping bill or bill of export, as the case may be;
(iv) the registered recipient shall be registered with an Export Promotion Council or aCommodity Board recognized by the Department of Commerce;
(v) the registered recipient shall place an order on registered supplier for procuring goods atconcessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of theregistered supplier;
(vi) the registered recipient shall move the said goods from place of registered supplier–
(a) directly to the Port, Inland Container Deport, Airport or Land Customs Station fromwhere the said goods are to be exported; or
(b) directly to a registered warehouse from where the said goods shall be move to thePort, Inland Container Deport, Airport or Land Customs Station from where the said goodsare to be exported;
(vii) if the registered recipient intends to aggregate supplies from multiple registered suppliers andthen export, the goods from each registered supplier shall move to a registered warehouse and afteraggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport orLand Customs Station from where they shall be exported;(viii) in case of situation referred to in condition
(vii), the registered recipient shall endorse receiptof goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registeredwarehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of thewarehouse operator shall be provided to the registered supplier as well as to the jurisdictional taxofficer of such supplier; and
(ix) when goods have been exported, the registered recipient shall provide copy of shipping billor bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and taxinvoice of the registered supplier along with proof of export general manifest or export report havingbeen filed to the registered supplier as well as jurisdictional tax officer of such supplier.
2. The registered supplier shall not be eligible for the above-mentioned exemption if the registeredrecipient fails to export the said goods within a period of ninety days from the date of issue of tax invoice.
3. This notification shall come into force with immediate effect
