CSD is having a 50% exemption in all forms of GST

Canteen Stores Department (CSD) is having a 50% exemption in all forms of GST

CSD is having a 50% exemption in all forms of GST i.e. CGST, SGST, IGST and UTGST pan India.

Applicability of GST on CSD operations

The GST is equally applicable to entire range of items provided by CSD except Liquor. All CSD Depots are required to be registered under GST under single PAN. The MoF and GST Council have partly exempted GST to CSD through refund mechanism. CSD is having a 50% exemption in all forms of GST i.e. CGST, SGST, IGST and UTGST pan India.

The major highlights of exemption are as follows:

Supply of goods by CSD to the URCs or to authorized customers or Supply of
goods by URCs to authorized customers is 50% exempted from GST. Please refer appendix 10 A.

Canteen Stores Department shall be entitled to claim a refund of fifty per cent of the applicable taxes paid by it on all inward supplies of goods received by it for the purposes of subsequent supply of such goods to the Unit Run Canteens or to the authorized customers of the CSD.

The same can be described as under:

50% GST is exempted and the remaining GST is added in the whole sale price of the item for URCs. The sale from URC to customer is totally exempt from GST.

Implementation of GST has lead to uniformity in rates of not only general
goods pan India but also similar rates for two/four wheelers pan India with marginal difference in rates due to transit insurance and freight charges and other formalities that varies from state to state, thus, making it convenient for CSD clientele to purchase a vehicle anywhere without drawing a comparison of rates at all places.

In addition, the rate of white goods is also same across all dealers in India.

CSD is required to make payment of entire amount of GST and applicable
Compensation Cess to Suppliers but is required to charge only 50% of GST rate and full Compensation Cess from customers. The balance 50% of GST is to be obtained from Govt through refund mechanism by filing appropriate returns.