UNJUST ENRICHMENT - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

8. UNJUST ENRICHMENT 8.1 GST is an indirect tax whose incidence is to be borne by the consumer and hence, a presumption is always drawn that the taxpayer will shift the incidence of tax to the final consumer. It is for this reason that every claim of refund (barring specified exceptions) needs to pass the test of unjust enrichment. 8.2 Every refund claim, if sanctioned, is first transferred to the Consumer Welfare Fund. 8.3 The test of unjust enrichment is inapplicable in case of refund of accumulated ITC, refund on account of exports, refund of payment of wrong tax (Integrated tax instead of Central tax plus State tax and vice versa), refund of tax paid on a supply which is not provided or where refund voucher is issued or if the applicant shows that he has not passed on the incidence of tax to any other person. In all other cases the test of unjust enrichment needs to be satisfied for the claim to be paid to the applicant. 8.4 If the refund claim is less than Rupees 2 Lakhs, then a self-declaration of the applicant to the effect that the incidence of tax has not been passed to any other person will suffice to process the refund claim. For refund claims exceeding Rupees 2 Lakhs, a certificate from a Chartered Accountant/ Cost Accountant has to be given.