Sales Tax Rules, 2006

CHAPTER-XV

PROCEDURE FOR AVAILING ZERO-RATING UNDER S.NO.12 OF THE FIFTH SCHEDULE TO THE ACT

Sales Tax Rules, 2006 CHAPTER-XV PROCEDURE FOR AVAILING ZERO-RATING UNDER S.NO.12 OF THE FIFTH SCHEDULE TO THE ACT From: 2025-01-01 - To: 0000-00-00 152. Conditions and limitations for availing zero-rating facility.- (1) Zero-rating of goods specified against S. No. 12 of the Fifth Schedule to the Act shall be subject to determination of input-output ratios of the manufacturer by the Input- Output Co-efficient Organization (hereinafter referred to as “IOCO”). (2) For zero-rating of the import and local procurement of raw materials, packing materials, subcomponents, components, sub-assemblies and assemblies required for the manufacture of goods specified against S. No. 12 of the Fifth Schedule to the Act, the following conditions and procedures shall be observed, namely:- a. a registered manufacturer of the goods specified against serial number 12 of the Fifth Schedule, having suitable in-house facilities (hereinafter referred to as “the applicant” in this chapter) shall submit an application to the Commissioner Inland Revenue having jurisdiction along with the complete list of his annual requirement of his inputs that he intends to import or purchase for the manufacture of such goods, in the format prescribed in the form STR-29; b. the Commissioner may approve the declaration of input-output ratio of the applicant in the form STR-30, without physical verification in case the input-output ratio of the applicant has already been determined by the IOCO under an earlier notification issued for such goods or the declared input-output ratios and input requirements are in accordance with prevailing industry averages; c. in case the Commissioner is not satisfied with the declared input-output ratios because of their being, prima facie, not in accordance with prevailing industry averages and input-output ratios of the applicant having not already been determined by IOCO, he may, after provisionally allowing quantity required for six months, make a reference to IOCO for final determination thereof. After receipt of report from IOCO the Commissioner shall then determine the annual quantitative entitlement of inputs and grant final approval for zero-rated purchases or…