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TMI BlogClarifications on refund related issuesX X X X Extracts X X X X X X X X Extracts X X X X ..... ocessing of different types of refund claims under GST and clarified the exports related refund issues. 2. In order to ensure uniformity in the implementation of the provisions of the law across the State, the Commissioner, in exercise of its powers conferred by section 168 of the Chhattisgarh Goods and Services Tax Act, 2017 (CGGST Act for short) hereby clarifies the issues raised as below : 3. Claim for refund filed by an input service distributor, a person paying tax under section 10 or a non-resident taxable person : Doubts have been raised in case of claims for refund filed by an input service distributor (ISD for short), a person paying tax under section 10 of the CGGST Act (composition taxpayer for short) or a non-resident taxable pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of a claim for refund of balance in the electronic cash ledger filed by an ISD or a composition taxpayer ; and the claim for refund of balance in the electronic cash and/or credit ledger by a non-resident taxable person, the filing of the details in Form GSTR-1 and the return in Form GSTR-3B is not mandatory. Instead, the return in Form GSTR-4 filed by a composition taxpayer, the details in Form GSTR-6 filed by an ISD and the return in Form GSTR-5 filed by a non-resident taxable person shall be sufficient for claiming the said refund. 4. Application for refund of integrated tax paid on export of services and supplies made to a special economic zone developer or a special economic zone unit : It has been represented that while filin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the corresponding tax period. 5. Refund of unutilized input tax credit of compensation cess availed on inputs in cases where the final product is not subject to the levy of compensation cess : Doubts have been raised whether an exporter is eligible to claim refund of unutilized input tax credit of compensation cess paid on inputs, where the final product is not leviable to compensation cess. For instance, cess is levied on coal, which is an input for the manufacture of aluminium products, whereas cess is not levied on aluminium products. In this regard, section 16(2) of the Integrated Goods and Services Tax Act, 2017 (IGST Act for short) states that, subject to the provisions of section 17(5) of the CGGST Act, credit of input tax may be av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the exporter of exempted or non-GST goods ? As per section 16(2) of the IGST Act, credit of input tax may be availed for making zero rated supplies, notwithstanding that such supply is an exempt supply. Whereas, as per section 2(47) of the CGGST Act, exempt supply includes non-taxable supply. Further, as per section 16(3) of the IGST Act, a registered person making zero rated supply shall be eligible to claim refund when he either makes supply of goods or services or both under bond or letter of undertaking (LUT) or makes such supply on payment of integrated tax. However, in case of zero-rated supply of exempted or non-GST goods, the requirement for furnishing a bond or LUT cannot be insisted upon. It is thus, clarified that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit availed on other domestic supplies received for making the payment of integrated tax on export of goods. However, the said restriction is not applicable to an exporter who has procured goods from suppliers who have not availed the benefits of the specified notifications for making their outward supplies. Further, the said restriction is also not applicable to an exporter who has procured goods from suppliers who have, in turn, received goods from registered persons availing the benefits of these notifications since the exporter did not directly procure these goods without payment of tax or at reduced rate of tax. Thus, the restriction under sub-rule (10) of rule 96 of the CGGST Rules is only applicable to those exporters who are direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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