Since we are in Special Economic Zone, for all purchases both import and indigenous we are not paying duties and taxes. The CST is nil against I - Form, the KVAT is nil against Form 43 , the Excise duty is nil against ARE-1 form and the Customs duty is nil against Bill of Entry. We would like to know whether there is any change in this system ? What are the other impacts in procurement action .

Under the new taxation the CST,KVAT and Central Excise duty are clubbed to GST. The GST Council has decided the rate of GST schedule for various goods on 18.5.2017. You can verify the rate of GST for goods you are procurring from the schedule. (refer www.gst.gov.in). For the exemption from GST for the goods procurred in SEZ separte notifications has to be issued by the Govt.Since the Govt. has extened the existing exemption in service tax to GST for various services, it is expected that the existing exemption for goods procurred by SEZ may continue. Hence no impact of additional tax is expected for goods procurred by SEZ other than easy documentation. Import duty is outside the purview of GST and the existing exempton may be continued. The system is under liquid state and GST council meetings are in progress.