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Refund of unutilized input tax credit of compensation cess availed on inputs in case where the final product is not subject to the levy of compensation cess - GST Ready Reckoner - GSTExtract ..... ils of drawback in respect of Central tax. It is clarified that if a supplier avails of drawback in respect of duties rebated under the Customs and Central Excise Duties Drawback Rules, 2017, he shall be eligible for refund of unutilized input tax credit of Central tax/ State tax/ Union Territory tax / Integrated tax/ Compensation cess. It is also clarified that refund of eligible credit on account of State tax shall be available if the supplier of goods or services or both has availed of drawback in respect of Central tax. [ Para 40 ] Guidelines for claims of refund of Compensation Cess whether a registered person is eligible to claim refund of unutilized input tax credit of compensation cess paid on inputs, where the zero-rated final prod ..... x x x x x Extracts x x x x x Refund of unutilized input tax credit of compensation cess availed on inputs in case where the final product is not subject to the levy of compensation cess - GST Ready Reckoner - GST x x x x x Extracts x x x x x ..... ed supplies made under Bond/Letter of Undertaking on which clarifications have been sought since GST roll out, the same have been examined and are clarified as below: [ Para 43 ] a) Issue: A registered person uses inputs on which compensation cess is leviable (e.g. coal) to export goods on which there is no levy of compensation cess (e.g. aluminium). For the period July, 2017 to May, 2018, no ITC is availed of the compensation cess paid on the inputs received during this period. ITC is only availed of the Central tax, State tax/Union Territory tax or Integrated tax charged on the invoices for these inputs. This ITC is utilized for payment of Integrated tax on export of goods. Vide Circular No. 45/19/2018-GST dated 30.05.2018, it was clarifi ..... x x x x x Extracts x x x x x Refund of unutilized input tax credit of compensation cess availed on inputs in case where the final product is not subject to the levy of compensation cess - GST Ready Reckoner - GST x x x x x Extracts x x x x x ..... t of past periods, as aforesaid, would not be admissible in respect of consignments exported on payment of Integrated tax. This process would be applicable for application(s) for refund of compensation cess (not claimed earlier) in respect of the past period. b) Issue: A registered person uses coal for the captive generation of electricity which is further used for the manufacture of goods (say aluminium) which are exported under Bond/Letter of Undertaking without payment of duty. Refund claim is filed for accumulated Input Tax Credit of compensation cess paid on coal. Can the said refund claim be rejected on the ground that coal is used for the generation of electricity which is an intermediate product and not the final product which is ex ..... x x x x x Extracts x x x x x Refund of unutilized input tax credit of compensation cess availed on inputs in case where the final product is not subject to the levy of compensation cess - GST Ready Reckoner - GST x x x x x Extracts x x x x x ..... er). Since both the balance in the electronic credit ledger at the end of the tax period for which the claim of refund is being filed and the balance in the electronic credit ledger at the time of filing the refund claim is ₹ 50/- (assuming that no other debits/credits have happened), the common portal will proceed to debit ₹ 50/- from the ledger as the claimed refund amount. The question is whether the proper officer should sanction ₹ 50/- as the refund amount or ₹ 25/- (i.e. half of the ITC availed after adjusting for reversals)? Clarification: ITC which is reversed cannot be held to have been 'availed' in the relevant period. Therefore, the same cannot be part of refund of unutilized ITC on account of zero ..... x x x x x Extracts x x x x x Refund of unutilized input tax credit of compensation cess availed on inputs in case where the final product is not subject to the levy of compensation cess - GST Ready Reckoner - GST x x x x x Extracts x x x x x
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