What about GST on excise free zones and products purchased from it along with eligibility of credit on closing stocks on transition date?
Do we have any updates on treatment of EXCISE free zone after GST comes in? Also do we know what will a dealer who purchases from an unit in EXCISE free zone be eligible as credit on his closing stock on transition date?
If you buy from EXCISE free zone that means you haven’t paid Excise duty on purchases. so there would not be any Cenvat credit on stock held as on June 30. there is no question of any credit allowed to you during transition period. correct me if I have not understood your question.
Thanks Girish, in principle you are perfectly right, but the concern is that post GST the product will be liable for CGST, which will be a massive cost on the purchaser. This will be a complete unplanned cost. for e.g. is the product is @ 28%, paying out 14% additional taxes without a credit will be crippling. Also do we have any idea what will the future of EFZ be?