The document provides an overview of export refunds under GST. It discusses key concepts like zero rated supplies, which include exports and supplies to SEZ. It outlines the different types of export refunds available under GST such as export of goods/services upon payment of IGST or under bond/LUT. The document then analyzes section 54 of the CGST Act regarding refund procedures. It discusses refund eligibility for zero rated supplies and supplies with an inverted tax structure. Key points like time limits for refund claims and restrictions are also summarized.
Checklist on GST Audit step by step guide on how to conduct GST Audit. Main emphasis on
1. Approaching Audit place
2. Checking Invoice
3. Input Tax Credit
4. Time of Supply
etc...
The document discusses the role of customs under the GST regime and procedures related to export. There are two options for export under GST - export under bond/LUT without IGST payment and claiming refund of unutilized credits, or export with payment of IGST and claiming refund of the tax paid. The document outlines the procedures for each option, including requirements for furnishing an LUT/bond, validation processes for IGST refunds, and changes to drawback rules and rates under the new regulations. It also covers self-sealing and electronic sealing procedures for exports.
The document provides information on input tax credit under GST in India. It defines key terms like input tax, input service, capital goods, output tax, inward and outward supplies. It explains the process of availing and utilizing input tax credit and conditions that must be met like having a valid tax invoice and the supplier depositing the taxes. Certain items are ineligible for input tax credit like motor vehicles, food and beverages, life and health insurance, and works contract services for construction of immovable property. The time limit to claim input tax credit is within one year from the invoice date or the due date of filing annual return, whichever is earlier.
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. GST is payable on the supply of goods or services. In this webinar, we will be able to understand and analyse the provisions related to time and value of supply under GST.
The document discusses the classification of goods and services under the GST regime in India. It states that HSN (Harmonized System of Nomenclature) codes are used to classify goods according to chapters and headings, while services are classified under a Service Accounting Code (SAC) system with various sections, groups and service codes. It provides examples of HSN and SAC codes and explains how goods and services are mapped to the appropriate classification codes for GST purposes.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
The document discusses the key provisions related to Input Tax Credit (ITC) under the GST law in India. It begins by defining ITC and input tax. It then outlines some of the major ITC provisions under the Central GST Act and rules, including those relating to eligibility for ITC, documentation requirements, blocked credits, and time limits. Specific provisions covered in more detail include Section 16 on eligibility and conditions for ITC, Section 17 on apportionment of credit and blocked credits, and restrictions on ITC for works contracts and construction of immovable property. The document provides an overview of the major ITC concepts and sections under the GST law.
Checklist on GST Audit step by step guide on how to conduct GST Audit. Main emphasis on
1. Approaching Audit place
2. Checking Invoice
3. Input Tax Credit
4. Time of Supply
etc...
The document discusses the role of customs under the GST regime and procedures related to export. There are two options for export under GST - export under bond/LUT without IGST payment and claiming refund of unutilized credits, or export with payment of IGST and claiming refund of the tax paid. The document outlines the procedures for each option, including requirements for furnishing an LUT/bond, validation processes for IGST refunds, and changes to drawback rules and rates under the new regulations. It also covers self-sealing and electronic sealing procedures for exports.
The document provides information on input tax credit under GST in India. It defines key terms like input tax, input service, capital goods, output tax, inward and outward supplies. It explains the process of availing and utilizing input tax credit and conditions that must be met like having a valid tax invoice and the supplier depositing the taxes. Certain items are ineligible for input tax credit like motor vehicles, food and beverages, life and health insurance, and works contract services for construction of immovable property. The time limit to claim input tax credit is within one year from the invoice date or the due date of filing annual return, whichever is earlier.
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. GST is payable on the supply of goods or services. In this webinar, we will be able to understand and analyse the provisions related to time and value of supply under GST.
The document discusses the classification of goods and services under the GST regime in India. It states that HSN (Harmonized System of Nomenclature) codes are used to classify goods according to chapters and headings, while services are classified under a Service Accounting Code (SAC) system with various sections, groups and service codes. It provides examples of HSN and SAC codes and explains how goods and services are mapped to the appropriate classification codes for GST purposes.
With the introduction of the concept of GST Audit, it is important to know and taken int consideration various facts that is needed before we conduct GST Audit. In this presentation, we have covered the concept of filing of GSTR 9C, its applicability and various other topics that one should take care of. The presentation also covers an example of GSTR 9C based upon a hypothetical case. The PPT is a one shot compilation of various topics associated with GSTR 9C - GST Audit.
The document discusses the key provisions related to Input Tax Credit (ITC) under the GST law in India. It begins by defining ITC and input tax. It then outlines some of the major ITC provisions under the Central GST Act and rules, including those relating to eligibility for ITC, documentation requirements, blocked credits, and time limits. Specific provisions covered in more detail include Section 16 on eligibility and conditions for ITC, Section 17 on apportionment of credit and blocked credits, and restrictions on ITC for works contracts and construction of immovable property. The document provides an overview of the major ITC concepts and sections under the GST law.
This is a presentation for those people who wants to understands the basics of gst. This ppt includes how the gst works, Inpu ax Credit, Rates of GST, Composition Scheme etc.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
www.actouch.com
OBJECTIVE
To check if the levy and collection of GST is in order, there also needs to be monitoring of offences committed by any person in contravention to provisions of this Act. The GST Law imposes penalties and prosecution for offences depending on the intention of the person committing the offence. In this Webinar we will be learning about the provisions of the GST Act regarding the major offences, penalty leviable, prosecutions for sepcified offenses and general disciplines relating to penalty.
The document provides an overview of refunds under the GST regime in India. It discusses 12 situations in which refunds may arise, the relevant legal provisions, definitions of refunds, time limits for claiming refunds, refund procedures, basic features of refunds including adjustment, withholding, interest payment and documents required. Refunds can arise due to excess tax payment, exports, provisional assessments, court/tribunal orders and other scenarios.
This document provides an overview of input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. It defines key terms related to ITC such as input, capital goods, input tax, output tax, and reverse charge. It outlines the conditions for claiming ITC and lists items for which ITC is ineligible. It also discusses proportionate credit, adjustments to ITC, transition provisions for claiming ITC on stock, and the process for claiming ITC on inter-state and intra-state supplies.
The document discusses provisions around the time of supply under the GST law. It explains key sections related to time of supply of goods and services. For services, it classifies the situations to determine time of supply under forward charge, reverse charge, vouchers, and residual cases. It also discusses the time of supply in case of an addition in value by way of interest/penalty and in case of a change in tax rate. The key aspects covered are time of invoice issuance, date of payment receipt, date of provision of service, and date of entry in books of recipient.
The document provides an overview of the key aspects of the Goods and Services Tax (GST) implemented in India including:
1) It describes the features and fundamentals of GST including how it is a dual tax system levied by both central and state governments.
2) It outlines the registration process and requirements to register under GST.
3) It explains the various GST returns required to be filed including monthly, annual, and other periodic returns along with due dates.
4) It provides answers to common questions about GST such as who needs to register, what the tax rates are, and how GST benefits consumers.
The document discusses interest liability under the GST Act. Section 50 deals with interest payable for delayed tax payments. Per the section and various court judgments, interest is typically levied on the net tax amount owed after considering available input tax credits. However, a recent Telangana High Court judgment dismissed a writ petition and held that interest should be calculated on the full gross tax liability until returns are filed to claim credits. Stakeholders now face uncertainty as amendments aligning the law with the intent of compensating the government for delayed net amounts have not been enacted.
The document provides an overview of refund provisions under GST including situations where refunds may arise, legal provisions, refund procedures and time limits, refund scenarios, and basic features of the refund process. Key points include:
- Refunds can arise from excess payments, exports, deemed exports, provisional assessments, and other situations.
- The CGST and IGST Acts contain provisions regarding refund of tax, interest, and other amounts paid.
- The time limit to claim a refund is 2 years from the relevant date, and refunds must generally be sanctioned within 60 days.
- Various scenarios where refunds may be claimed are described, along with required documents and restrictions.
-
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall understand and analyse the provisions related to Refund under the GST law.
OBJECTIVES:
Introduction
Implementation
Requirement to generate an E-Waybill
Persons required to generate E-Way bill
Registration
Generation
Other clarifications
Concept & Nature of supply under GST LawArpit Verma
Chapter III of Central Goods and Services Tax Act, 2017 & Integrated Goods and Services Tax Act, 2017 contains the provision of levy and collection of GST.
The expression “Supply” is defined under section 7(1) of Central Goods and Services Tax Act, 2017.
There is no such proposition in the existing laws as the concept of supply is unique to our tax system and considered as a ‘taxable event’ for the first time in indirect tax regime.
Read My Full Article on Concept & Nature of Supply Under GST.
GST was introduced in India with the objectives of achieving "One Nation, One Tax" by replacing multiple indirect taxes with a single unified tax system. It subsumed various taxes into one unified tax, with the Central Government deciding tax rates and policies. GST helps remove the cascading effect of taxes, improves tax compliance, widens the tax base, and makes procedures largely online.
The document discusses the valuation of supplies under section 15 of the CGST/SGST Act. It states that as per section 15(1), the value of a supply shall be the transaction value which is the price actually paid or payable where the supplier and recipient are not related. The value shall also include any amount the supplier is liable to pay that was incurred by the recipient, incidental expenses charged by the supplier, interest/late fees/penalties for delayed payment, and subsidies directly linked to the price excluding central/state government subsidies. Discounts given before or at supply are excluded from transaction value but those given after supply are included. Where transaction value cannot be determined, valuation shall be as prescribed. Valuation rules
HSN codes for goods and service tax (GST) in indiaAvalara
HSN Codes are Harmonised System of Nomenclature codes.
What are HSN Codes ? , Use of HSN codes in GST ,Classification of HSN Codes and How to find HSN Code for your product? all is explained in detail here.
Introduction
Definition of baggage
General prohibition
Statutory provision
Baggage Rules
Article mentioned in annex
Baggage rules
Types of Passenger
General free allowence
Provisional return to India
Jewelry
Tourist
Transfer of residence
Problems on baggage
Problem
Solution
Remark
GST is nothing but a value added tax on goods & services combined. It is the provisions of Input Tax Credit that make GST a value added tax i.e collection of tax at all points after allowing credit for the inputs
This document provides an overview of the tax deducted at source (TDS) provisions under the Goods and Services Tax (GST) law in India. It discusses who is liable to deduct TDS, the registration requirements, rates and thresholds for TDS, payment and return filing procedures, certificates to be issued, refunds, and comparisons with the previous TDS system under state VAT laws. The key aspects covered are registration under GST for TDS, the 1-2% rates for deduction, monthly payment and return filing timelines, and certificates to be provided to deductees.
- The document provides an overview of the proposed Goods and Services Tax (GST) model for India.
- It outlines the shortcomings of the current indirect tax system that GST aims to address, such as multiplicity of taxes and compliance burdens.
- The key aspects of GST that are discussed include the dual GST model with Central and State taxes, taxable events and registration requirements, return filing process, time and place of supply rules, payment mechanisms, and other provisions like input tax credit and refunds.
1. The document discusses input tax credit under the Goods and Services Tax (GST) in India. It provides definitions of key terms related to input tax credit like input, input service, capital goods, and input tax.
2. It summarizes the conditions for claiming input tax credit, such as possessing valid tax invoices, receiving the goods or services, ensuring the tax has been paid to the government, and filing returns. There are also time limits for claiming input tax credit.
3. The document outlines circumstances where input tax credit is not available, such as when goods or services are used for non-business purposes or making exempt supplies. It also discusses provisions for apportioning credit between taxable and exempt
1. The document discusses provisions around input tax credit (ITC) under GST law, including relevant definitions, eligibility conditions, and restrictions.
2. Key conditions for availing ITC include receiving the goods/services, paying the tax to the supplier, filing valid returns, and possessing the required documents. There are also time limits to claim ITC for a financial year.
3. ITC is restricted and apportioned for goods/services used partly for business and non-business purposes, as well as for taxable, exempt and non-taxable supplies. Certain blocked credits are also specified.
4. Banks and financial institutions have an option to either comply with the general apportionment
This is a presentation for those people who wants to understands the basics of gst. This ppt includes how the gst works, Inpu ax Credit, Rates of GST, Composition Scheme etc.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
www.actouch.com
OBJECTIVE
To check if the levy and collection of GST is in order, there also needs to be monitoring of offences committed by any person in contravention to provisions of this Act. The GST Law imposes penalties and prosecution for offences depending on the intention of the person committing the offence. In this Webinar we will be learning about the provisions of the GST Act regarding the major offences, penalty leviable, prosecutions for sepcified offenses and general disciplines relating to penalty.
The document provides an overview of refunds under the GST regime in India. It discusses 12 situations in which refunds may arise, the relevant legal provisions, definitions of refunds, time limits for claiming refunds, refund procedures, basic features of refunds including adjustment, withholding, interest payment and documents required. Refunds can arise due to excess tax payment, exports, provisional assessments, court/tribunal orders and other scenarios.
This document provides an overview of input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. It defines key terms related to ITC such as input, capital goods, input tax, output tax, and reverse charge. It outlines the conditions for claiming ITC and lists items for which ITC is ineligible. It also discusses proportionate credit, adjustments to ITC, transition provisions for claiming ITC on stock, and the process for claiming ITC on inter-state and intra-state supplies.
The document discusses provisions around the time of supply under the GST law. It explains key sections related to time of supply of goods and services. For services, it classifies the situations to determine time of supply under forward charge, reverse charge, vouchers, and residual cases. It also discusses the time of supply in case of an addition in value by way of interest/penalty and in case of a change in tax rate. The key aspects covered are time of invoice issuance, date of payment receipt, date of provision of service, and date of entry in books of recipient.
The document provides an overview of the key aspects of the Goods and Services Tax (GST) implemented in India including:
1) It describes the features and fundamentals of GST including how it is a dual tax system levied by both central and state governments.
2) It outlines the registration process and requirements to register under GST.
3) It explains the various GST returns required to be filed including monthly, annual, and other periodic returns along with due dates.
4) It provides answers to common questions about GST such as who needs to register, what the tax rates are, and how GST benefits consumers.
The document discusses interest liability under the GST Act. Section 50 deals with interest payable for delayed tax payments. Per the section and various court judgments, interest is typically levied on the net tax amount owed after considering available input tax credits. However, a recent Telangana High Court judgment dismissed a writ petition and held that interest should be calculated on the full gross tax liability until returns are filed to claim credits. Stakeholders now face uncertainty as amendments aligning the law with the intent of compensating the government for delayed net amounts have not been enacted.
The document provides an overview of refund provisions under GST including situations where refunds may arise, legal provisions, refund procedures and time limits, refund scenarios, and basic features of the refund process. Key points include:
- Refunds can arise from excess payments, exports, deemed exports, provisional assessments, and other situations.
- The CGST and IGST Acts contain provisions regarding refund of tax, interest, and other amounts paid.
- The time limit to claim a refund is 2 years from the relevant date, and refunds must generally be sanctioned within 60 days.
- Various scenarios where refunds may be claimed are described, along with required documents and restrictions.
-
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall understand and analyse the provisions related to Refund under the GST law.
OBJECTIVES:
Introduction
Implementation
Requirement to generate an E-Waybill
Persons required to generate E-Way bill
Registration
Generation
Other clarifications
Concept & Nature of supply under GST LawArpit Verma
Chapter III of Central Goods and Services Tax Act, 2017 & Integrated Goods and Services Tax Act, 2017 contains the provision of levy and collection of GST.
The expression “Supply” is defined under section 7(1) of Central Goods and Services Tax Act, 2017.
There is no such proposition in the existing laws as the concept of supply is unique to our tax system and considered as a ‘taxable event’ for the first time in indirect tax regime.
Read My Full Article on Concept & Nature of Supply Under GST.
GST was introduced in India with the objectives of achieving "One Nation, One Tax" by replacing multiple indirect taxes with a single unified tax system. It subsumed various taxes into one unified tax, with the Central Government deciding tax rates and policies. GST helps remove the cascading effect of taxes, improves tax compliance, widens the tax base, and makes procedures largely online.
The document discusses the valuation of supplies under section 15 of the CGST/SGST Act. It states that as per section 15(1), the value of a supply shall be the transaction value which is the price actually paid or payable where the supplier and recipient are not related. The value shall also include any amount the supplier is liable to pay that was incurred by the recipient, incidental expenses charged by the supplier, interest/late fees/penalties for delayed payment, and subsidies directly linked to the price excluding central/state government subsidies. Discounts given before or at supply are excluded from transaction value but those given after supply are included. Where transaction value cannot be determined, valuation shall be as prescribed. Valuation rules
HSN codes for goods and service tax (GST) in indiaAvalara
HSN Codes are Harmonised System of Nomenclature codes.
What are HSN Codes ? , Use of HSN codes in GST ,Classification of HSN Codes and How to find HSN Code for your product? all is explained in detail here.
Introduction
Definition of baggage
General prohibition
Statutory provision
Baggage Rules
Article mentioned in annex
Baggage rules
Types of Passenger
General free allowence
Provisional return to India
Jewelry
Tourist
Transfer of residence
Problems on baggage
Problem
Solution
Remark
GST is nothing but a value added tax on goods & services combined. It is the provisions of Input Tax Credit that make GST a value added tax i.e collection of tax at all points after allowing credit for the inputs
This document provides an overview of the tax deducted at source (TDS) provisions under the Goods and Services Tax (GST) law in India. It discusses who is liable to deduct TDS, the registration requirements, rates and thresholds for TDS, payment and return filing procedures, certificates to be issued, refunds, and comparisons with the previous TDS system under state VAT laws. The key aspects covered are registration under GST for TDS, the 1-2% rates for deduction, monthly payment and return filing timelines, and certificates to be provided to deductees.
- The document provides an overview of the proposed Goods and Services Tax (GST) model for India.
- It outlines the shortcomings of the current indirect tax system that GST aims to address, such as multiplicity of taxes and compliance burdens.
- The key aspects of GST that are discussed include the dual GST model with Central and State taxes, taxable events and registration requirements, return filing process, time and place of supply rules, payment mechanisms, and other provisions like input tax credit and refunds.
1. The document discusses input tax credit under the Goods and Services Tax (GST) in India. It provides definitions of key terms related to input tax credit like input, input service, capital goods, and input tax.
2. It summarizes the conditions for claiming input tax credit, such as possessing valid tax invoices, receiving the goods or services, ensuring the tax has been paid to the government, and filing returns. There are also time limits for claiming input tax credit.
3. The document outlines circumstances where input tax credit is not available, such as when goods or services are used for non-business purposes or making exempt supplies. It also discusses provisions for apportioning credit between taxable and exempt
1. The document discusses provisions around input tax credit (ITC) under GST law, including relevant definitions, eligibility conditions, and restrictions.
2. Key conditions for availing ITC include receiving the goods/services, paying the tax to the supplier, filing valid returns, and possessing the required documents. There are also time limits to claim ITC for a financial year.
3. ITC is restricted and apportioned for goods/services used partly for business and non-business purposes, as well as for taxable, exempt and non-taxable supplies. Certain blocked credits are also specified.
4. Banks and financial institutions have an option to either comply with the general apportionment
INPUT TAX CREDIT / HOW ITC IS AVAILED AND UTILIZED.pptxArchanaYadav726286
1. Input tax credit (ITC) allows registered taxpayers to claim credit for taxes paid on inputs and capital goods.
2. Per Section 16 of the CGST Act, taxpayers must satisfy certain conditions to claim ITC including possessing valid tax invoices, the goods or services having been received, and the tax having been paid to the government.
3. ITC can be claimed on capital goods and inputs but not if the taxpayer has claimed depreciation on the tax component of those items under the income tax act. There are also time limits for claiming ITC.
Refunds under GST & Impact of GST Audit on Statutory/ Tax AuditsGST Law India
The following presentation enumerates how to claim refund under GST and also auditing mechanism such as auditing by a chartered accountant, taxing authorities and special audit under GST. The presentation also details out the treatment of zero rated supplies and deemed export.
#No Automatic Refund of IGST for Exporters# By SN PanigrahiSN Panigrahi, PMP
#No Automatic Refund of IGST for Exporters# By SN Panigrahi
No Automatic Refund of IGST
Stringent Systems Put in Place to Detect Fraudulent Refund Claims By Exporters
Input tax credit under GST allows registered taxpayers to claim credit for taxes paid on inputs, capital goods and input services that are used for business purposes. Some key conditions for availing ITC include: the supplier is registered, tax is paid by the supplier, tax invoice is obtained, goods or services are received, and monthly returns are filed. ITC can be claimed on inputs, capital goods and input services if used for taxable supplies but not for exempt or non-business purposes. There are also restrictions on claiming ITC for certain specified items like motor vehicles. The manner of reversal of ITC is prescribed in case of partial exempt or non-business usage.
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
Short Term Course on GST- Input Tax CreditSandeep Gupta
This module deals with Input Tax Credit, an important element of GST. This module states the eligibility to avail ITC and events when ITC can not be availed.
Updates on Circulars and Notifications - V. K. SubramaniD Murali ☆
Updates on Circulars and Notifications - V. K. Subramani - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
Input tax credit (ITC) allows businesses to claim a credit for taxes paid on business inputs to offset against taxes due on business outputs. This helps avoid double taxation (cascading of taxes) and reduces the overall tax burden. Key conditions to claim ITC include possessing a valid tax invoice, having received the goods or services, ensuring the supplier has paid the taxes to the government, and filing applicable returns. ITC can be claimed for both goods and services taxes, subject to restrictions on exempted items. Capital goods purchases also qualify for ITC.
This document summarizes key aspects of GST registration in India based on draft rules released by the government. It notes that registration will be required if annual aggregate turnover exceeds Rs. 9 lakhs (Rs. 4 lakhs in North Eastern states). It outlines the registration procedure and discusses provisions for migrating existing taxpayers. It also discusses the impact of GST on the manufacturing sector, including opportunities for improved sourcing and credit availability, as well as challenges related to multiple proposed GST rates and potential differences in rates between goods and services.
Income Tax Amendments Applicable to AY 2020-21 (FY 2019-20)AmitJain910
This document discusses important amendments to consider while filing income tax returns for assessment year 2020-21 relating to rebates, surcharges, tax rates, deductions, depreciation, TDS provisions, capital gains exemption, and more. Key points include a reduced MAT rate of 15%, option to purchase two homes for capital gains exemption, increased standard deduction and TDS limits on rent and cash withdrawals.
Article is about when to apply GST Refund when goods or services are exported out of India. Legal provisions for process of GST refund scheme. GST is a destination based consumption tax where in the levy of tax moves along with goods and /or services.where a goods exporter is not in position to utilize the GST paid in inputs such as raw material , inputs etc. which are used for export of goods shall apply for refund of GST paid by goods exporter. By taking GST Refund Exporter of Goods can increase its business working capital.
Refund Process under GST across Different Categories.pdfConnectAffluence
The procedure for seeking ’Refund under GST’ has been evolving ever since the GST law has been implemented. There have been quite a few circulars issued clarifying the procedure for seeking refund under different categories. Timely refund not only helps the businesses in smooth functioning, it also gives a boost to the working capital.
In this article, we have attempted to summarize the computation of refund amount under different categories along with broadly outlining the process.
The document discusses various concepts related to input tax credit (ITC) under GST including eligibility, conditions, blocked credits, and special circumstances. It provides explanations on key aspects like who can avail ITC, documents required, time limits, reversal and re-credit of ITC, and apportionment of common credits. It also elaborates on blocked credits that cannot be claimed under GST and the treatment of ITC in special scenarios like transitioning registration statuses.
GST Provisions relating to Export, import, sez etcCA Mukesh Sharma
The document discusses key aspects of export and import of goods and services under GST. It explains that export of goods is treated as zero-rated supply and does not require fulfillment of additional conditions like export of services. Import of goods into India would be treated as an inter-state supply and subject to integrated tax. The document also discusses important points regarding imports including time and place of levy of tax, availability of input tax credit, and valuation for tax purposes. High sea sales occurring before goods cross Indian customs frontiers are treated as inter-state supplies subject to integrated tax.
The document discusses various transitional provisions under GST relating to carry forward of credits from existing tax laws to GST. It addresses questions around treatment of closing balances, stock credits, capital goods credits, input tax credits for inputs in transit, and treatment of registered persons engaged in both taxable and exempted activities. Key provisions covered include migration of existing taxpayers to GST, availment of input tax credit on closing balances as per last returns, deemed credit for inputs in stock, and carry forward of unavailed capital goods credit. Conditions, timelines and clarifications relating to these transitional measures are also provided.
The document summarizes the key changes made by the Central Board of Direct Taxes to Form 3CD, which is used for tax audits. There are now 6 amendments to existing clauses and 9 new clauses added. The changes require disclosure of additional information like GST registration number, details on capital asset deductions and deemed gains, transfer pricing adjustments, limitations on interest deductions from associated enterprises, and cash transactions over 200,000 rupees. Complying with the new clauses, especially those relating to impermissible tax avoidance and transfer pricing adjustments, will make the tax auditor's role more complex as it requires thorough investigation and understanding tax regulations.
The document provides information on the due dates for filing annual GST returns and audit for the 2018-19 financial year. It discusses the applicability of audit requirements based on aggregate turnover, which is the total value of taxable, exempt and export supplies across all registrations with the same PAN. It also summarizes the key parts and tables in form GSTR-9 for filing the annual return and highlights important points about filing, consequences of late or non-filing, and how to analyze the details required in the different sections.
Similar to Export Refund under GST Laws Final (20)
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
In general, Export trade is regulated by the Directorate General of Foreign Trade (DGFT) functioning under the Ministry of Commerce and Industry (MCI) and the exporters are required to follow the policies and procedures announced by the DGFT, from time to time.
Though DGFT is the regulator for Foreign trade in India, RBI being the financial market regulator is responsible for management of foreign exchange, regulator for payment & settlement systems while continuously working towards the development of Indian financial markets.
RBI regulates the foreign exchange markets through Foreign Exchange Management Act, 1999 (herein after referred as FEMA Act)
In exercise of powers conferred by section 7(1)(a), 7(3) & 47(2) of FEMA Act, 1999, RBI has notified Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 (also known as “Export Regulations, 2000”) by notification number 23/2000-RB dated 3rd May 2000 which came into force from 1st June, 2000.
Sa260 communication-with-those-charged-with-governanceAdmin SBS
Meaning
Scope of SA
Role of communication between TCWG and Auditor
Applicability
Auditor’s responsibilities
Matters to be communicated to TCWG
Objectives
Factors affecting forms of communication
Documentation
Section 148 of the Income Tax Act allows the tax authorities to issue a notice to assess or reassess income that has escaped assessment for a particular year. If the Assessing Officer has reason to believe that income has escaped assessment, they may assess such income by serving a notice on the assessee within 4-16 years from the end of the relevant assessment year, depending on the amount of income escaped. Upon receiving the notice, the assessee must file a return. If the assessment is completed, the assessee will be liable to pay tax on the escaped income along with interest and potential penalties.
This document discusses audit procedures for trade receivables. It defines trade receivables and explains their importance for business cash flow and credit relationships. It then covers trade receivable management processes, aging reports, internal audit checklists, external confirmation procedures, and audit procedures to ensure completeness, occurrence, existence, classification, and proper presentation and disclosure of trade receivables.
The document outlines the agenda for a two-day training event on financial auditing hosted by Palmetto IT Solutions from March 12-13, 2019. The event will cover various topics through a series of presentations and speakers, including an inaugural speech, sessions on compliance requirements under taxation laws, audit documentation, and soft skills. It will take place at Palmetto IT Solutions' office in Hyderabad, India. The document provides the detailed schedule listing the session topics and speakers for each time slot on both days of the event.
The document discusses various aspects of income taxable under Section 56 of the Income Tax Act 1961 relating to "Income from Other Sources". It summarizes taxation of gifts, winnings, share premium in excess of fair market value, dividends, and other miscellaneous incomes. Specific items discussed include the taxability of gifts based on various limits and exceptions. Winnings from lotteries, races and other games are taxed at a flat 30% rate. Share premium received in excess of a company's fair market value may be taxed. Dividends from foreign companies and domestic companies over Rs. 10 lakhs are included.
This document summarizes key aspects of Section 112A of the Indian Income Tax Act, 1961 related to taxation of long-term capital gains (LTCG) from listed equity shares and units. It defines LTCG and short-term capital gains, and explains that LTCG from listed shares is now taxed at 10% if securities transaction tax is paid. It also discusses the cost of acquisition and exemptions available, including the option to reinvest gains in a residential property.
This document provides an overview of bank guarantees. It defines what a bank guarantee is, noting that it is a written contract issued by a bank on behalf of a customer to take responsibility for payment if the customer does not pay. It discusses the key parties involved, types of bank guarantees, advantages and disadvantages, procedures for applying, and audit and disclosure requirements. The document aims to cover these topics at a high level for providing an overview of bank guarantees.
This document provides an overview of the key aspects of the Foreign Exchange Management Act (FEMA). It begins with a brief introduction to FEMA and outlines the rationale behind its enactment. It then discusses the various rules, regulations, directives and circulars issued under FEMA. Key definitions from the Act are also summarized. The document provides a schematic flow of the legal framework under FEMA and highlights some important sections of the Act. It concludes with a tabular representation of the various regulations issued by the Reserve Bank of India under FEMA. In summary, the document gives a high-level overview of the structure and content of FEMA and the legal and regulatory framework governing foreign exchange transactions in India.
The document provides an overview of External Commercial Borrowings (ECB) regulations in India. It defines ECB as bank loans, trade credits beyond 3 years, bonds/debentures without convertibility, financial leases, and borrowings from multilateral institutions, among others. The regulator is the Government of India with support from the Reserve Bank of India. Indian companies can access foreign funds through ECB, FCCBs, preference shares/FCEB, and rupee denominated bonds overseas. Eligible borrowers include entities eligible for FDI, port trusts, SEZ units, SIDBI, oil marketing companies, and microfinance organizations. Recognized lenders must be residents of FAFT or IOSCO
The document summarizes key amendments made to various sections of the CGST Act, 2018 through the CGST (Amendment) Act, 2018. Some of the key amendments include expanding the scope of supply, allowing input tax credit for goods/services received by the registered person even if not physically received, increasing the threshold for composition scheme to Rs. 1.5 crores, and clarifying the treatment of input tax credit for motor vehicles and vessels/aircrafts used for transportation.
- Section 68 of the Income Tax Act allows the tax authority to treat any unexplained sum appearing in the books of an assessee as income if the assessee cannot provide a satisfactory explanation of its nature and source.
- Key questions around Section 68 include whether the sum is considered income, the tax rate applied, and whether losses can be set off against such income.
- Penny stocks are sometimes used to convert unaccounted money into accounted money using tax exemptions, but recent amendments aim to restrict this.
- The "peak credit theory" examines cash deposits and withdrawals to determine the maximum unexplained sum taxable under Section 68.
This document summarizes a presentation on shell companies in India. It begins by outlining reasons why regulators are cracking down on shell companies, such as their use for tax evasion, money laundering, and fraudulent schemes. It then defines shell companies as firms that exist on paper without real business operations or assets. Several methods used by shell companies are described, including creating layers of companies to hide owners and conducting fake transactions. The laws often violated by illegal shell companies in India are also listed. Government task forces have been established to investigate shell companies and several actions have been taken, like striking inactive companies from registration records.
Overview on-procedure-for-setting-up-of-sez-unitAdmin SBS
This document provides an overview of the procedure for setting up a unit in a Special Economic Zone (SEZ) in India. It discusses what an SEZ is, how SEZs evolved in India, the administrative setup for SEZs, defines an SEZ unit, compares SEZs and units, outlines who can set up a unit, and details the 8 step procedure for setting up a unit including application submission, approval process, and post-approval requirements. It also addresses the validity, extension, and cancellation of the Letter of Approval (LOA) granted to SEZ units.
Income tax-return-of-income-and-assessment-proceduresAdmin SBS
- Return of Income must be filed by certain persons and entities like companies, firms, individuals with income above exemption limit, residents with foreign assets/accounts, charitable trusts, political parties, and research/educational institutions.
- There are different ITR forms for individuals, HUFs, companies, and other persons to file ROI depending on income sources.
- The due date for filing ROI varies depending on the type of assessee but is typically July 31 or September 30. Late or belated returns can be filed within 1 year with penalties. Revised returns can also be filed to correct omissions or mistakes.
- The income tax department undertakes assessment in two stages - intimation issued after automated
Icds vi effects of changes in foreign exchange ratesAdmin SBS
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
Topics to be covered:
Introduction of ICDS
Applicability of ICDS
Scope
Identification of tangible assets
Components of Actual cost
Special cases
Inclusions and Exclusions
Self-constructed tangible fixed asset
Non-monetary consideration
Improvements and Repairs
Joint ownership and Joint cost
Transitional provisions
Differences between ICDS V, AS-10 and Ind-AS-16
Introduction:
Section 11 deals with Income from property held for “Charitable or Religious purposes.”
The income shall be subjected to the provisions of
Section 60 - Transfer of Income where there is no transfer of assets
Section 61 - Revocable Transfer of Assets
Section 62 - Transfer irrevocable for a specified period
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
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5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
1. Export Refund Under GST
CA Manindar K
Partner
M/s SBS and Company LLP
manindar@sbsandco.com
+91 9700734609
by
ICAI, Hyderabad
25th June, 2018
2. manindar@sbsandco.com www.sbsandco.com +91 97007346092
Zero Rated Supplies
Detailed Analysis of Section 54
Types of Export Refunds under GST
Export of Goods upon Payment of IGST
Export of Services upon Payment of IGST
Export of Goods/services under BOND/LUT
Export of Goods/Services to SEZ
Refund if any for Supplies to Merchant
Exporter
Refund for Deemed Exports
Coverage
Procedural Aspects relating to Refund claims
Interest for delayed Refunds
Credit of Amount Rejected as Refund Claims
4. manindar@sbsandco.com www.sbsandco.com +91 97007346094
16. (1) “zero rated supply” means any of the following supplies of goods or services or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be
availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:–
(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and
procedure as may be prescribed, without payment of integrated tax and claim refund of unutilized input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on
payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.
Zero-Rated Supplies
5. manindar@sbsandco.com www.sbsandco.com +91 97007346095
Following supplies are zero-rated:
Export of goods or services
Supplies to SEZ unit or SEZ developer
Section 2(5) of IGST Act, 2017 defines ‘Export of Goods’ to mean taking goods out of India to a place outside India
Section 2(6) of IGST Act, 2017 defines ‘Export of Service’ to mean any service when
Supplier of service is located in India
Recipient of service is located outside India
Place of supply of service is outside India
Payment for such service has been received in CFE
Supplier and recipient of service are not mere establishments of distinct persons
Zero-Rated Supplies
6. manindar@sbsandco.com www.sbsandco.com +91 97007346096
Input tax credit can be availed for zero-rated supplies not withstanding that such supply is an exempt
supply
A registered person making zero-rated supplies shall be eligible to claim refund of ITC either of the
following options;
Supply the goods or services under bond/LUT without payment of integrated tax and claim refund of ITC
Supply the goods or services by paying integrated tax and claim refund of such tax
Zero-Rated Supplies
7. manindar@sbsandco.com www.sbsandco.com +91 97007346097
Case Study#1:
Mr. X of Delhi is having 20 years of rich experience in the field of aeronautical engineering. He has been
appointed as a technical consultant by Transworld Aviation FZE, UAE. The services are mainly undertaken by
using electronic means viz. email, video conferencing etc. Payment is made in CFE. Mr. X is having negligible
expenditure in the form of internet services in order to provide these services. He does not have any intention
to claim refund of GST paid on internet services. Does Mr. X is required to register, execute Bond/LUT in order
to export these services?
Zero-Rated Supplies
8. manindar@sbsandco.com www.sbsandco.com +91 97007346098
Section 16 mandates the requirement of Bond/LUT only when the exporter intends to claim refund.
IGST Act, 2017 unconditionally provides that a service is zero-rated if it exported in terms of section 2(6).
Rule 96A of CGST Rules, 2017.
Refund of integrated tax paid on export of goods or services under bond or Letter of Undertaking.-
Any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish,
prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay
the tax due along with the interest specified under sub-section (1) of section 50 within a period of -
(a) fifteen days after the expiry of three months, 2[or such further period as may be allowed by the Commissioner,] from the date of
issue of the invoice for export, if the goods are not exported out of India; or
(b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of
the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange.
Zero-Rated Supplies
9. manindar@sbsandco.com www.sbsandco.com +91 97007346099
Para 4 of Circular No. 37/11/2018-GST:
4. Exports without LUT: Export of goods or services can be made without payment of integrated tax under the
provisions of rule 96A of the Central Goods and Services Tax Rules, 2017 (the CGST Rules). Under the said provisions,
an exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before
effecting zero rated supplies. A detailed procedure for filing of LUT has already been specified vide Circular No.
8/8/2017 –GST dated 4th October, 2017. It has been brought to the notice of the Board that in some cases, such zero
rated supplies have been made before filing the LUT and refund claims for unutilized input tax credit have been filed.
4.1. In this regard, it is emphasized that the substantive benefits of zero rating may not be denied where it has been
established that exports in terms of the relevant provisions have been made. The delay in furnishing of LUT in such
cases may be condoned and the facility for export under LUT may be allowed on ex post facto basis taking into account
the facts and circumstances of each case.
Zero-Rated Supplies
10. manindar@sbsandco.com www.sbsandco.com +91 970073460910
Para 5 of Circular No. 37/11/2018-GST:
5.1 It has been reported that the exporters have been asked to pay integrated tax where the goods have been
exported but not within three months from the date of the issue of the invoice for export. In this regard, it is
emphasized that exports have been zero rated under the Integrated Goods and Services Tax Act, 2017 (IGST Act)
and as long as goods have actually been exported even after a period of three months, payment of integrated
tax first and claiming refund at a subsequent date should not be insisted upon. In such cases, the jurisdictional
Commissioner may consider granting extension of time limit for export as provided in the said sub-rule on post
facto basis keeping in view the facts and circumstances of each case. The same principle should be followed in
case of export of services.
Though the Rule 96A is mandating the requirement of Bond/LUT prior to export without payment of IGST,
the same was insisted under Section 16, only for the purposes of claiming refund. No demand shall be
insisted upon if the goods or services are ultimately exported.
Zero-Rated Supplies
11. manindar@sbsandco.com www.sbsandco.com +91 970073460911
Case Study#2
Xlent Resorts has provided convention services to Tech Soft Ltd (SEZ Unit) towards an annual event. As the
services are supplied to SEZ (zero-rated), Xlent Resorts has not charged any GST. During Department Audit, it
has been identified that convention services are not among the authorized services of Tech Soft Ltd and
accordingly alleged that their services does not qualify as zero-rated supply. Accordingly, GST is demanded
from Xlent Resorts. Whether Xlent Resorts is required to pay GST?
Zero-Rated Supplies
12. manindar@sbsandco.com www.sbsandco.com +91 970073460912
Second Proviso to Rule 89 of CGST Rules, 2017:
Provided further that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone
developer, the application for refund shall be filed by the –
(a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorized
operations, as endorsed by the specified officer of the Zone;
(b) supplier of services along with such evidence regarding receipt of services for authorized operations as
endorsed by the specified officer of the Zone;
Zero-Rated Supplies
13. manindar@sbsandco.com www.sbsandco.com +91 970073460913
Para 2.2 of Circular No. 48/22/2018-GST:
A conjoint reading of the above legal provisions reveals that the supplies to a SEZ developer or a SEZ unit shall
be zero rated and the supplier shall be eligible for refund of unutilized input tax credit or integrated tax paid, as
the case may be, only if such supplies have been received by the SEZ developer or SEZ unit for authorized
operations. An endorsement to this effect shall have to be issued by the specified officer of the Zone.
Section 26(1)(e): Exemption from service tax under Chapter-V of the Finance Act, 1994 on taxable services
provided to a Developer or Unit to carry on the authorised operations in a Special Economic Zone.
IGST Act, 2017 is an enabling Act to grant GST exemptions that are conferred under SEZ Act, 2005 which only
limits the exemption to authorized operations. Harmonious interpretation should be adopted to reconcile the
inconsistencies between two legislations.
Zero-Rated Supplies
15. manindar@sbsandco.com www.sbsandco.com +91 970073460915
Section 54 contains 14 Sub-sections and an Explanation
Snapshot of the said section
Refund of Tax {Section 54 of CGST Act, 2017}
Sub- Section Particulars
Sub-section (1) Refund of Tax, Interest or any other amount paid in General
Sub-section (2) Refund of tax paid on inward supplies received by UNO, MFIs and other notified organisations
Sub-section (3) Refund of unutilised ITC relating to zero rated supplies and supplies having inverted tax structure
Sub-section (4) Documentary Evidence to be submitted with refund application
Sub-section (5) Processing of refund claim
Sub-section (6) Provisional refund of 90% of claim amount in case of refunds due to zero-rated supplies
Sub-section (7) Time limit to dispose of the claims
16. manindar@sbsandco.com www.sbsandco.com +91 970073460916
Refund of Tax {Section 54 of CGST Act, 2017}
Sub- Section Particulars
Sub-section (8) &(9) Unjust Enrichment and the exceptions
Sub-section (10) Withholding of refund or Deduction of refund amount with other tax dues
Sub-section (11) Withholding of Refund pending Appellate proceedings
Sub-section (12) Interest for delayed sanction of Refund
Sub-section (13) Refund in case of advance tax paid by Casual and Non-Resident taxable persons
Sub-section (14) No refund is permissible if claim amount is less than Rs 1000/-
Explanation Refund and Relevant Date to determine time limit for filing refund claim
17. manindar@sbsandco.com www.sbsandco.com +91 970073460917
Sub-Section (1):
Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may
make an application before the expiry of two years from the relevant date in such form and manner as may be
prescribed:
Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the
provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such
manner as may be prescribed.
Explanation.-For the purposes of this section,––
(1) “refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input
services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports,
or refund of unutilised input tax credit as provided under sub-section (3).
Refund of Tax, Interest and Other Amounts Paid
18. manindar@sbsandco.com www.sbsandco.com +91 970073460918
Sub-section provides for refund of tax, interest and any other amount paid.
Instances leading to refund claim includes erroneous payment of tax, excess payment on account of rate or
exemption issue, export of goods or services, deemed exports
Refund can be claimed by filing application within two years from the relevant date.
Section 54 is not applicable to claim refund of any balance in electronic cash ledger.
Refund of Tax, Interest and Other Amounts Paid
19. manindar@sbsandco.com www.sbsandco.com +91 970073460919
Sub-Section (2):
A specialized agency of the United Nations Organisation or any Multilateral Financial Institution and
Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or
Embassy of foreign countries or any other person or class of persons, as notified under section 55, entitled to a
refund of tax paid by it on inward supplies of goods or services or both, may make an application for such
refund, in such form and manner as may be prescribed, before the expiry of six months from the last day of
the quarter in which such supply was received.
Refund of Tax for UNO, MFIs etc
20. manindar@sbsandco.com www.sbsandco.com +91 970073460920
Under the erstwhile regime, the exemptions are abinito.
Under the GST regime, the exemptions are conferred by way of refund of tax paid on inward supplies
received by these organizations.
The time limit to claim refund is on or before six months from the last day of quarter in which supply was
received.
Refund of Tax for UNO, MFIs etc
21. manindar@sbsandco.com www.sbsandco.com +91 970073460921
Sub-Section (3):
Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of
any tax period:
Provided that no refund of unutilised 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 may be notified by the Government on the
recommendations of the Council:
Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are
subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in
respect of central tax or claims refund of the integrated tax paid on such supplies.
Refund of ITC in case of Zero-Rated Supplies &
Inverted Tax Structure
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Unutilized ITC can be claimed as refund in cases of zero-rated supplies and supplies involving inverted tax
structure
Zero-Rated Supplies includes exports and supplies to SEZ
No refund is allowed if exports are subject to export duty or drawback relating to Central tax or Integrated tax
is claimed.
Inverted tax structure should be on account of higher tax on inputs as compared to tax on output supplies.
No refund is allowed if ITC is accumulated on account of higher tax on input services.
Government may on council recommendations, notify the supplies of goods or services on which refund cannot
be claimed on account of inverted duty structure.
Notification 5/2017-CT(Rate) and Notification 15/2017-CT(Rate) are issued in this regard
Refund of ITC in case of Zero-Rated Supplies &
Inverted Tax Structure
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Sub-section (4):
The application shall be accompanied by–
(a) such documentary evidence as may be prescribed to establish that a refund is due to the applicant; and
(b) such documentary or other evidence (including the documents referred to in section 33) as the applicant may
furnish to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid in
relation to which such refund is claimed was collected from, or paid by, him and the incidence of such tax and
interest had not been passed on to any other person
Provided that where the amount claimed as refund is less than two lakh rupees, it shall not be necessary for the
applicant to furnish any documentary and other evidences but he may file a declaration, based on the
documentary or other evidences available with him, certifying that the incidence of such tax and interest had not
been passed on to any other person.
Documentary Evidence
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Documentary evidence includes invoices, shipping bills, FIRCs/BRCs etc
In case of claims hit by unjust enrichment, evidence should also be provided to prove that the incidence
of tax and interest has not been passed on.
No need to submit the documents for claim amounts less than two lakhs
Documentary Evidence
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Sub-Sections (5),(6)&(7):
(5) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund
is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in
section 57.
(6) Notwithstanding anything contained in sub-section (5), the proper officer may, in the case of any claim for refund on
account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered
persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety
per cent. of the total amount so claimed, excluding the amount of input tax credit provisionally accepted, in such manner and
subject to such conditions, limitations and safeguards as may be prescribed and thereafter make an order under sub-section (5)
for final settlement of the refund claim after due verification of documents furnished by the applicant.
(7) The proper officer shall issue the order under sub-section (5) within sixty days from the date of receipt of application
complete in all respects.
Processing of Refund
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Every application for refund shall be processed within 60 days from the date of receipt of application.
In case of refund of ITC on zero-rated supplies, 90% of the claim amount shall be refunded on provisional
basis.
Processing of Refund
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Sub-Sections (8) & (9):
(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if
such amount is relatable to-
(a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund
voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other
person; or
(f) the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify.
(9) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any court or in any other
provisions of this Act or the rules made thereunder or in any other law for the time being in force, no refund shall be made except in accordance with the
provisions of sub-section (8)
Unjust Enrichment and the Exceptions
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Refund is granted subject to satisfaction by claimant as to no unjust enrichment is involved.
Otherwise, the refund claim amount shall be transferred to a fund
Principle of unjust enrichment should be followed notwithstanding anything contrary in any judgment or
provisions of the Act
Unjust enrichment is not applicable in the following cases;
Refund of tax or ITC on zero-rated supplies
Refund of unutilized ITC on account of inverted tax structure
Refund of tax paid on supply not provided for which invoice is not issued or refund voucher has been issued
Refund of inter-state taxes paid as intra-state taxes or vice versa as provided in section 77
Tax or interest incidence borne by such class of recipients as Central Government may notify
Unjust Enrichment and the Exceptions
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Sub-Section (10):
(10) Where any refund is due under sub-section (3) to a registered person who has defaulted in furnishing any return or who is
required to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority by the specified
date, the proper officer may-
(a) withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may
be;
(b) deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable person is liable to pay but which
remains unpaid under this Act or under the existing law.
Explanation.––For the purposes of this sub-section, the expression “specified date” shall mean the last date for filing an appeal under
this Act.
Withholding or deducting of Refund due
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Withholding or adjustment against dues is allowed only if the refund sanctioned is unutilized ITC on
account of zero-rated supplies or inverted tax structure.
Refund amount will be withheld pending compliance for return, tax, interest, penalty.
Refund amount can be adjusted against dues towards tax, interest, penalty, fee or any other amount
Withholding or deducting of Refund due
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Sub-Section (11) & (12):
(11) Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any
other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely
to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed,
he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may
determine.
(12) Where a refund is withheld under sub-section (11), the taxable person shall, notwithstanding anything contained in
section 56, be entitled to interest at such rate not exceeding six per cent. as may be notified on the recommendations
of the Council, if as a result of the appeal or further proceedings he becomes entitled to refund.
Withholding of Refund pending Proceedings
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Withholding of refund can be made if the following conditions are satisfied;
Appeal against such refund claim is due or any other proceeding is pending under this Act
Grant of refund is like to adversely affect the revenue.
Interest at 6% is payable for the withholding period.
Withholding of Refund pending Proceedings
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Relevant Date for Time Limit to file Refund Claim
Situation Relevant Date
Export of Goods By Air or Sea: Date on which goods leave India
By Road: Date on which goods cross the frontiers
By Post: Date of despatch of goods by post office
Deemed Exports The date on which return relating to deemed exports is filed
Services exported outside India Date of receipt of CFE if services are supplied prior to
payment
Date of invoice if payment is already received
Refund pursuant to a Judgment Date of communication of such judgment
Refund on account of inverted tax structure From the end of financial year in which claim for refund
arises
Tax paid under Provisional assessment The date of adjustment of such tax after final assessment
Refund claimed by a person other than supplier Date of receipt of goods or services
Any other case Date of payment of Tax
34. 34
Zero-Rated Supplies under GST
Refund of IGST paid on Export of Goods
Refund of IGST paid on Export of Services
Refund of ITC on Export of Goods and Services under bond/LUT
Refund of ITC/IGST paid on supplies to SEZ
Refunds involved in supplies to Merchant Exporter at concessional rate
Refund under deemed Exports
Types of Export Refunds under GST
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Applicability of Rules
Refund of ITC for exports and supplies to SEZ under Bond/LUT shall be claimed by following the procedure
prescribed under Rule 89 to Rule 94
Refund of Integrated tax paid for export of goods or services shall be claimed by following the procedure
prescribed under Rule 96
Refund of Integrated tax paid for export of goods or services under Bond/LUT shall be claimed by following
Rule 96A along with general procedure under Rule 89 to 94 to the extent applicable
Refund Related to Zero-Rated Supplies
Export and Supplies to
SEZ under Bond/LUT
Export by payment of
integrated tax under Bond/LUT
Export by paying
integrated tax
Rule 89 Rule 96 Rule 96A
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Rule 89 facilitates exporters to claim refund of ITC availed on inputs and input services.
ITC availed on capital goods cannot be claimed as refund if export under bond/LUT is undertaken.
Refund of ITC availed on capital goods can be claimed by paying IGST upon export of goods or services.
Export under Bond/LUT vis-à-vis Payment of IGST
Particulars Situation I Situation II
Turnover of Exports 50,00,000 50,00,000
Rate of GST applicable 18% 18%
ITC on Inputs 2,00,000 2,00,000
ITC on input services 1,00,000 1,00,000
ITC on capital goods 3,00,000 Nil
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The shipping bill filed at the time of export shall be deemed to be an application filed for refund of
integrated tax paid on goods exported outside India provided the following two conditions are satisfied;
The person in charge of the conveyance carrying the export goods duly files the export manifest covering shipping
bill of the exporter.
The exporter should have filed a valid GSTR-3B
Details of relevant export invoices as submitted in GSTR-1 shall be transmitted electronically to ICEGATE
in order to confirm that goods covered by said invoices are exported. Pending filing of GSTR-1, exporters
can fill the export details in table 6A of GSTR-1
Upon electronic confirmation of export of goods and filing of returns, the proper officer of Customs shall
process the refund claim and the amount shall be credited to the bank account of exporter through PFMS.
Rule 96-Refund of Integrated Tax Paid on Exports
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The refund claim may be withheld by proper officer of Customs
where a request has been received from Jurisdictional officer to withhold it in accordance with the provisions of
sub-sections (10) and (11) of section 54.
Where the goods are exported in violation of the provisions of Customs Act, 1962
Withholding details are communicated to applicant in Part B of Form GST RFD-07. If the applicant
becomes entitled to refund later on, the same shall be allowed in Form GST RFD-06
Application for refund of integrated tax paid on services shall be undertaken in accordance with Rule 89
Rule 96-Refund of Integrated Tax Paid on Exports
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Applicant claiming refund of integrated tax paid on export of goods or services should not have received
goods from a supplier who has availed any of the following benefits
Benefit of Deemed Exports
Supplied goods at a concessional rate of 0.1%
Availed benefits under EOU
Supplier has imported any goods under EPCG, Advance Authorization schemes
In all these cases, the person exporting the goods should export without payment of Integrated tax under
Bond/LUT.
This condition is prescribed to avoid excess claims
Rule 96-Refund of Integrated Tax Paid on Exports
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Following are the common errors for rectification
Rule 96 Refund-Common Errors & Rectification
ERROR
CODE
MEANING RECTIFICATION MEASURES
SB000 Successfully Validated Records found matching without errors
SB001 Invalid SB details Amending Table 6A of GSTR-1 using Table 9A of GSTR-1
SB002 EGM not filed Exporter to approach shipping line to ensure electronic filing
SB003 GSTIN Mismatch Amending Table 6A. Declaration from other entity of same PAN
that no refund is claimed against the SB.
SB004 Record already received and validated Duplicate Record can be eliminated in GSTR-1
SB005 Invalid Invoice Number Clerical Error (Amend GSTR-1). Two sets maintained (Concordance
Table)
SB006 Gateway EGM not available Requesting shipping line to file supplementary EGMs electronically
for the period July’17 to October’18. Has decided to allow officer
interface by DG (sys) to rectify this errorCircular 8/2018-Cus dt 23.03.2018
Circular 5/2018-Cus dt 23.02.2018
Guide Released by
Directorate Systems
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Difference in Export Turnover disclosed between GSTR-1 and GSTR-3B
Customs policy wing would prepare a list of such exporters and share the list to GSTN.
GSTN shall share the details to exporters through emails.
Cases where there is no short payment
CA Certificate should be submitted on or before 31st October 2018 at the Customs Office and
Jurisdictional GST office.
Non-submission of CA Certificate will affect future refunds.
Cases where there is short payment
Short payment shall be met and submit self- certified proof of payment to AC/DC of Customs.
CA Certificate should also be submitted in all cases the short fall involved is more than Rs. 10 lakhs
Rule 96- Refund Common Errors & Rectification
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Applicant claiming refund of integrated tax paid on export of goods or services should not have received
goods from a supplier who has availed any of the following benefits
Benefit of Deemed Exports
Supplied goods at a concessional rate of 0.1%
Availed benefits under EOU
Supplier has imported any goods under EPCG, Advance Authorization schemes
In all these cases, the person exporting the goods should export without payment of Integrated tax under
Bond/LUT.
This condition is prescribed to avoid excess claims by adjusting ITC related to domestic supplies.
Rule 96-Refund of Integrated Tax Paid on Exports
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This Rule provides that any registered person availing the option to export goods or services without payment of
integrated tax is required to furnish a bond or LUT in Form GST RFD-11 binding himself;
To pay tax within 15 days after the expiry of three months from the date of issue of invoice for export if goods are not exported
out of India
To pay tax within 15 days after the expiry of one year from the date of invoice if payment for such service is not received in CFE
Failure to export the goods or services or pay integrated tax within the time limit specified above will result in
bond/LUT being withdrawn for recovery of tax.
The withdrawn bond/LUT shall be restored when the registered persons pays the amount due.
If the goods or services are ultimately exported, then refund can be claimed by following the procedure under Rule
96
Rule 96A-Refund of Integrated Tax Paid on Exports
under Bond/LUT
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The following exporters are covered under this rule
Exporter of goods exporting under bond/LUT without payment of Integrated tax
Exporter of services exporting under bond/LUT without payment of Integrated tax
Exporter of services by paying integrated tax.
In case of exports under bond/LUT without payment of tax, the refund is of ITC which can be claimed as refund
only after debiting an equivalent amount in electronic credit ledger.
Sub-rule (4A) provides that exporter of goods is entitled to claim refund of ITC availed on input services and
other inputs used in export but not inputs for which the supplier has availed the benefit of deemed exports
Sub-rule (4B) provides that exporter of goods is entitled to claim refund of ITC availed on input services and
other inputs used in export but not inputs for which the supplier has availed the benefit of EPCG, Advance
Authorisation, Supply at concessional rate.
Refund claim under Rule 89
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In case of export of goods or services, the amount of ITC that is eligible for refund shall be computed as
under;
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net
ITC ÷Adjusted Total Turnover
Net ITC: means input tax credit availed on inputs and input services during the relevant period other than
the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both
Adjusted Total Turnover: means the turnover in a state or union territory excluding value of exempt
supplies and the turnover of supplies in respect of which refund is claimed under Rule (4A) or (4B) or
both during the relevant period.
Relevant period is defined as the period for which refund is claimed.
Refund claim under Rule 89
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To claim refund of ITC due to inverted tax structure, the claim shall be field under Rule 89.
Supplier to Merchant Exporters can claim refund under inverted tax structure;
Maximum amount that can be claimed as refund is as follows;
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷
Adjusted Total Turnover} - tax payable on such inverted rated supply of goods and services.
Inverted Tax Structure
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This is the second type of zero-rated supply
The supplier can claim refund of integrated tax paid on supplies to SEZ
In cases where the supplier has taken bond/LUT, then refund can be claimed of the availed ITC.
Application for refund can be filed by supplier of goods only after such goods have been admitted in full
in SEZ for authorized operations as endorsed by the specified officer of zone.
Application filed by supplier of services along with evidence regarding receipt of services for authorized
operations as endorsed by specified officer of the zone.
Supplies to SEZ
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Notification 40/2017-CGST(Rate) and Notification 41/2017-IGST(Rate) provides for concessional rate of GST at 0.1% for
supplies to merchant exporter. The following are the conditions to be satisfied: .
Both the supplier and recipient merchant exporter are registered under GST and the supplier should issue a tax invoice to the
recipient.
The recipient shall be registered with an Export Promotion Council or a Commodity Board Recognised by Department of
Commerce
The Supply Order issued by recipient shall require the corresponding supplier to supply goods at a concessional rate as per
this notification. A copy of such supply order shall also be provided to the Suppliers’ Jurisdictional tax officer.
The recipient shall export the goods within a period of 90 days from the date of issue of invoice by supplier.
The recipient while exporting the goods shall indicate in shipping bill, the GSTN and tax invoice number of the supplier.
When the goods are exported, a copy of shipping bill or bill of export and proof of export general manifest or export report
filed shall be provided by recipient to the supplier and also to the jurisdictional tax officer of such supplier.
Supplies to Merchant Exporter
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The merchant exporter who receives the goods is required to export the goods under bond/LUT.
He can claim refund of 0.1% tax paid on the said goods received from supplier along with input tax paid
on any input services received by them in connection with this export
In cases where exports are made by payment of tax, he is not eligible for refund.
The supplier who supplies goods to merchant exporter at 0.1% may end up in accumulating excess ITC
than his output tax. In such case he can file refund of ITC treating the case as that of inverted tax
structure.
Supplies to Merchant Exporter
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Section 147 of CGST Act, 2017 empowers CG to notify certain supplies of goods which does not leave
India as deemed exports.
Notification 48/2017-Central Tax lists down the following transactions as deemed exports.
Supply of goods by a registered person against advance authorization
Supply of capital goods by a registered person against EPCG Authorisation
Supply of goods by a registered person to EOU
In terms of section 54, the tax paid on deemed exports shall be eligible for refund. Rule 89 provides that
the refund claim can be filed either by recipient or the supplier.
In order to consider the supplier’s claim for refund, the recipient of deemed exports should give an
undertaking that no input tax credit has been availed on the said deemed exports.
Deemed Exports
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Notification 49/2017-Central Tax prescribes the evidences to be submitted by supplier of deemed export
for claiming refund;
In case of supplies to EPCG License Holder or Advance Authorization Holder, an acknowledgment from tax officer
having Jurisdiction over such EPCG or Advance Authorization holder that goods are received by such license holder
In case of supplies to EOU, a copy of tax invoice issued by supplier shall be duly signed by EOU stating that deemed
export supplies are received. (Procedure prescribed under Circular 14/14/2017-GST shall be followed)
An undertaking by recipient of deemed exports that no input ITC is claimed.
An undertaking by recipient of deemed exports that he shall not claim refund of tax paid with respect to deemed
exports received by him.
The supplier who is claiming refund of tax paid on deemed exports, is not required to collect the tax
amount from the recipient.
Deemed Exports
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In cases where exports are undertaken by a registered person by receiving goods from a supplier claiming
deemed export benefit, then the recipient exporter will be entitled to claim refund of other inputs and
input services used in connection with the said export goods. {Rule 89(4A)}
Deemed Exports
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Rule 97A facilitates manual filing of refund claims until the GST portal is ready for electronic processing
Three Circulars has been issued by CBEC clarifying various issues with regard to the processing of refund
claims;
Circular No. 17/17/2017 –GST dated 15.11.2017
Circular No. 24/24/2017— GST dated 21.12.2017
Circular No. 37/11/2018— GST dated 15.03.2018
Circular No. 45/19/2018— GST dated 30.05.2018
The important issues addressed by these Circulars are summarized in sub-sequent slides
Interim Manual Processing of Refund Claim
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Rule 89 to 97A of CGST Rules, 2017 prescribes the procedure relating to refund claims
Application for Refund shall be filed in Form GST RFD-01/01A
Certificate from CA or CMA in Annexure to Form GST RFD-01 shall be taken to the effect that the incidence of
tax, interest or any other amount claimed as refund has not been transferred to any other person in all cases
where claim amount exceeds two lakh rupees
Certificate from CA or CMA is not required if the situation is covered by section 54(8)
Evidences listed in Rule 89(2) shall also be submitted
Acknowledgment shall be given in Form GST RFD-02 if refund claim is complete in all aspects (Date of Filing is
also mentioned in the acknowledgment)
If the application is incomplete, deficiencies are communicated in Form GST RFD-03 requiring the applicant to
file fresh refund claim after rectification of deficiencies
Procedure Involved in Refund Claims
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In case of refund of ITC relating to zero-rated supplies, provisional refund shall be granted in Form GST
RFD-04 within a period not exceeding seven working days from the date of acknowledgment (Form GST
RFD-02). Such provisional refund shall be granted after scrutiny of claim made, evidence submitted and
prima facie satisfied that claim amount is due to applicant.
Payment advice shall be issued in Form GST RFD-05 for electronic credit of claim amount provisionally
sanctioned to bank account of applicant
After examination of application, if the proper office is satisfied that claim amount shall be sanctioned,
then the same shall be sanctioned in Form GST RFD-06
In cases where refund amount is adjusted or withheld, details of adjustment or withholding shall be given
in Part A and Part B of Form GST RFD-07 respectively.
Procedure Involved in Refund Claims
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If proper officer is satisfied that refund claimed is not admissible or payable, then a notice in GST RFD-08
shall be issued to Applicant
Applicant is required to furnish reply within 15 working days in Form GST RFD-09
After considering the reply and giving a personal hearing opportunity, the proper officer will pass the
order in Form GST RFD-06 either sanctioning or rejecting the claim.
Payment advice shall be issued in Form GST RFD-05 for electronic credit of refund amount to bank
account of Appellant if unjust enrichment is not involved.
In cases where unjust enrichment is involved, the said fact should be mentioned in the order passed in
Form GST RFD-06. In such cases payment advice in Form GST RFD-05 shall be issued for credit to
consumer welfare fund.
Procedure Involved in Refund Claims
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If any refund claim filed of availed ITC, the amount debited in electronic credit ledger
shall be re-credited with the amount of refund claim that has been rejected.
Where a deficiency memo is issued in Form GST RFD-03, the amount if any debited in
electronic credit ledger shall be re-credited.
Re-credit shall be issued by an order in Form GST PMT-03.
Re-Credit of ITC Rejected as Refund Claims
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Section 56 provides that if there is any delay in sanctioning refund claim beyond
60 days from the date of receipt of application complete in all aspects, interest at
such rate not exceeding six percent as notified shall be paid.
The notified rate of interest is 6%. (Notification 13/2017-Central Tax)
The officer sanctioning refund claim shall make an order for payment of interest
in payment advice in Form GST RFD-05, specifying the amount of refund delayed,
the period of delay and the amount of interest payable
Interest on Delayed Refunds
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Filing of Application: Application shall be filled electronically in Form GST RFD-01A and a printout of the same
shall be submitted with Jurisdiction Office.
Jurisdiction Office: If the Jurisdiction of applicant is defined, the application shall be filed before the said
authority. Otherwise, the application can be filed either with Centre or State authority at the choice of
applicant.
Debit Entry: In cases of refund of accumulated ITC, the amount claimed as refund shall be debited to Electronic
Credit Ledger. This will be undertaken automatically in GST portal when Form RFD-01A is submitted. The portal
will generate the proof of debit (ARN No) which shall be submitted along with the application
Communications: All communications viz deficiency memo, provisional refund, notice, reply, orders shall be
undertaken manually in the forms prescribed in the relevant rules.
Important Clarifications Issued
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Frequency of Refund claims: In case of tax payers opted for quarterly filing of GSTR-01, then refund can be
claimed on quarterly basis. Exporters can claim refund claim for every month or quarter or they can file refund
claim by clubbing successive calendar months/quarters. However, the clubbing cannot be spread across two
financial years.
Refund of Provisional ITC: As the requirement of filing GSTR-2 and GSTR-3 returns is taken away, provisional
ITC shall be allowed as refund. In this regard, the claimant is required to give an undertaking to pay the claim
amount back to Government along with interest if the conditions of section 16(2)(c) are not complied with.
Drawback Declaration: A declaration shall be given by exporters along with refund claim that no drawback of
integrated tax or central tax is claimed. This declaration is required only for claims prior to October 2017.
Amendment through Table 9 of GSTR-1: If any error is committed in filling export details in table 6A, the same
can be amended by filling correct details in Table 9 of GSTR-1 of subsequent months. While sanction refund
claims, sub-sequent month GSTR-1 declarations can also be taken into account.
Important Clarifications Issued
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Refund of taxes paid under existing laws: Where claims filed for refund of CENVAT Credit under Rule 5 of CCR, 2005 under
existing laws shall be processed as per the provisions of existing laws in view of the provisions of Section 142(3),(4) and(5) of
CGST Act, 2017. The concerned authorities processing the refund claims should ensure that the corresponding CENVAT
Credit is not transitioned into GST
No Refund of Transition Credit: Refund of unutilized input tax credit is allowed in two scenarios mentioned in sub-section
(3) of section 54 of the CGST Act. These two scenarios are zero rated supplies made without payment of tax and inverted tax
structure. In sub-rule (4) and (5) of rule 89 of the CGST Rules, the amount of refund under these scenarios is to be calculated
using the formulae given in the said sub-rules. The formulae use the phrase ‘Net ITC’ and defines the same as “input tax
credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund
is claimed under sub-rules (4A) or (4B) or both”. It is clarified that as the transitional credit pertains to duties and taxes paid
under the existing laws viz., under Central Excise Act, 1944 and Chapter V of the Finance Act, 1994, the same cannot be said
to have been availed during the relevant period and thus, cannot be treated as part of ‘Net ITC’.
Important Clarifications Issued
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Refund of IGST Paid on Supplies to SEZ: Certain suppliers have not shown this turnover under ‘Zero-
Rated Supply’ column in GSTR-3B. As a result, the inbuilt control in GST portal is not allowing these
suppliers to claim refund. It has been clarified that for the period from 01.07.2017 to 31.03.2017, the
inbuilt control in GST Portal to file RFD01 has been taken away to allow these suppliers also to claim
refund.
No Refund of Compensation Cess: Clarified that no refund can be claimed of the Compensation Cess
Credit unless the export product is also subject to compensation cess.
Bond/LUT Requirement for non-GST and Exempted Goods: Clarified that in case of zero-rated supply of
non-GST and exempted goods, there is no requirement to execute Bond/LUT.
Important Clarifications Issued
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Situation Documentation
Export of services with payment of tax Export invoices
Invoices w.r.t inputs, input services and capital goods
BRC/FIRC for export of services
Export of goods or services without
payment of IGST
Shipping bills and invoices
Invoices w.r.t inputs and input services
BRC/FIRC for export of services
Supplies to SEZ Invoices issued for supplies to SEZ
Endorsement that goods are received for authorised operations in SEZ
Proof of receipt of services for authorised operations in SEZ
Proof of payment by SEZ unit or developer
Declaration to the effect that SEZ unit or developer has not availed ITC.
Documentary Evidence
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CA Manindar K
Partner
M/s SBS and Company LLP
manindar@sbsandco.com
9700734609
ICAI Branch, Hyd
25th June, 2018
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