Page 314 - CA Final GST

Badlani Classes

[Interest @ 6% per annum has been notified vide Notification No. 13/2007-
CT dated 28-06-2017 w.e.f. 1-7-2017]

Refund In Special Cases
Provisions relating to refund of the amount of advance tax deposited by a casual
taxable person/non resident taxable person As per Section 54(13), the amount of
advance tax deposited by a casual taxable person or a non-resident taxable person under
section 27(2), shall not be refunded unless such person has, in respect of the entire period
for which the certificate of registration granted to him had remained in force, furnished
all the returns required under section 39.

Refund of un-utilized Input tax credit As per Section 54(3), the relevant provisions are
discussed as under-
(a) Refund of ITC can be claimed at the end of tax period Registered person
may claim refund of any unutilized input tax credit at the end of any tax period.
(b) Cases when refund of un-utilized ITC is allowed:
(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 may be
notified by the Government on the recommendations of the Council.
(c) Cases where refund of ITC is not admissible However, refund is not
eligible in the following cases-
(i) If the goods exported out of India are subjected to export duty; or
(ii) If the supplier of goods or services or both avails of drawback in
respect of central tax.
(iii) If the supplier of goods or services or both claims refund of output
tax paid under IGST Act.

Refund of ITC on account of inverted duty structure [Rule 89(5) ] [Amended w.e.f.
18-4-2018]: In the case of refund on account of inverted duty structure, refund of
input tax credit shall be granted as per the following formula-

Maximum
( )
Refund = { } --

Amount
Tax Payable on such inverted rated supply of goods and services
Where,-
(a) “Net ITC” shall mean input tax credit availed on inputs during the relevant
period other than the input tax credit availed for which refund is claimed under
Rule 89(4A)/4(B) or both; and
(b) “Adjusted Total turnover” shall have the same meaning as assigned to it in Rule
89(4) i.e. the turnover in a State or a Union territory, as defined under Section
Page313
2(112), excluding-
(i) the value of exempt supplies other than zero-rated supplies and

Central Goods & Services Tax Act, 2017