9. Exemptions and zero rating

(1) The sale of goods listed in the First Schedule shall be exempt from tax subject to conditions and exceptions, if any, set out therein.

(2) The sales of goods in the course of export out of the territory of India falling within the scope of Section 5 of the Central Sales Tax Act, 1956 shall be zero-rated.

(3) Any sale of goods made by a registered dealer from a Domestic Tariff Area (DTA) to a unit located in a Special Economic Zone (SEZ) shall be zero-rated.

(4) Any sale of goods made by a registered dealer from a Domestic Tariff Area (DTA) to an Export Oriented Unit (EOU) shall be zero-rated.

(5) Any sale of goods made by a unit located in a Special Economic Zone (SEZ) or an Export Oriented Unit (EOU) to another unit located in another Special Economic Zone (SEZ) or to another export oriented unit, shall be exempt from payment of tax.

Explanation.— For the purpose of sub-section (3), sub-section (4) and sub-section (5), the expressions "Domestic Tariff Area", "Special Economic Zone" and "Export-Oriented Unit" shall have the meanings as assigned to them under the Central Excise Act, 1944 (Central Act I of 1944).