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What is meant by Zero Rated Sale?

Subsection (44) of Section 2, of the Act, defines the term. ?Zero Rated Sale? means a sale of any goods on which no tax is chargeable but credit for the input tax related to that sale is admissible. Section 18 lists out various types of zero rated sales which includes ? sales to International Organizations like, UN bodies, consulate offices, etc and includes direct exports falling under Section 5(1) of CST Act and sales in the course of export falling u/s 5(3) of the CST Act, 1956.

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