Question 2 - Can unutilized Input tax credit be allowed as refund? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 2. Can unutilized Input tax credit be allowed as refund? Ans. Yes, but only in following cases as given in sub-section (2) of section 38:- (i) Exports of goods on which export duty is not payable; (ii) Exports of services; (iii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on Outputs.