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TMI BlogRefund under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir/Madam A manufacturer sales goods to a merchant exporter at concessional rate @0.1%. Merchant export exports the said goods. Now the supplier of goods is want to file refund. Under which category he will file refund I.e. either he required to file under inverted duty structure or export of goods without payment of duty ? - Reply By KASTURI SETHI - The Reply = Refund can be filed under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory of 'Inverted Duty Structure' by the manufacturer who supplies to the Merchant Exporter at concessional rate of 0.1%. Such filing of refund is covered under Section 54 (3)(ii) of CGST Act which is as follows :- Section 54 (3) of CGST Act Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny tax period : Provided that no refund of unutilized input tax credit shall be allowed in cases other than - (i) zero rated supplies made without payment of tax; (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be notified by the Government on the recommendations of the Council Sales/supply of goods to merchant-exporter at the rate of 0.1%, is neither nil rated nor wholly exempt. It is partly exempted supply..Hence eligible for refund claim under Section 54 (3)(ii) of CGST Act . - Reply By SHARAD ANADA - The Reply = Agree with Kasturi Sir Also refer para 59 of Circular No. 125/44/2019 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST . The same is reproduced here under 59. Notification No. 40/2017 and notification No. 41/2017 Integrated Tax (Rate) both dated 23.10.2017 provide for supplies for exports at a concessional rate of 0.05% and 0.1% respectively, subject to certain conditions specified in the said notifications. It is clarified that the benefit of supplies at concessional rate is subject to certain condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions and the said benefit is optional. The option may or may not be availed by the supplier and / or the recipient and the goods may be procured at the normal applicable tax rate. It is also clarified that the exporter will be eligible to take credit of the tax @ 0.05% / 0.1% paid by him. The supplier who supplies goods at the concessional rate is also eligible for refund on account of inverted ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x structure as per the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the CGST Act . It may also be noted that the exporter of such goods can export the goods only under LUT / bond and cannot export on payment of Integrated tax. - Reply By KASTURI SETHI - The Reply = Sh.Sharad Anada Ji, Thanks a lot for posting relevant extract of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board's circular. - Reply By Shilpi Jain - The Reply = The merchant exporter can file refund only under inverted duty since he is not the exporter of goods - Reply By KUMAR Narasimhan - The Reply = Dear Mam, Supply to Merchant Exporter can file the refund as Inverted Duty Structure. but Merchant Exporter who exports the Goods to file the refund under Refund of ITC on Export of Goods Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices without Payment of Tax. Please clarify. - Reply By KUMAR Narasimhan - The Reply = Also please clarify the Merchant Exporter Incurred some other expenses in the port which is subject to 18% gst for the related shipment. Is he eligible to claim only the concessional rate of ITC or he can avail the 18% ITC also incurred in the port - Refund under GST - Query Started By: - Rajesh Kumar Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 25-4-2022 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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