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GST INPUT REFUND ON SUPPLIES MADE TO SEZ UNIT, Goods and Services Tax - GST

Issue Id: - 114019
Dated: 6-8-2018
By:- TAHA CHECHATWALA
GST INPUT REFUND ON SUPPLIES MADE TO SEZ UNIT

  • Contents

Dear All,

Our client is providing services to a SEZ unit and accordingly claims refund of GST paid on inputs utilized for the purpose of such services. Our client files its GSTR 1 on monthly basis and accordingly claims refund of tax paid on inputs for that particular month.

My query is, if suppose our client provides services in the month of july and made purchases for that purpose but the project does not get completed in july and continues in the month of august. Now in august also our client made some purchases and paid tax on them. Project is completed and sale invoice has been raised in august.

Now while making application for refund can our client claim refund of input tax paid on purchases made in july though sale invoice will be raised in the month of august.

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Posts / Replies

Showing Replies 1 to 10 of 10 Records

1 Dated: 6-8-2018
By:- Ganeshan Kalyani

In my view input procurd in July month is also eligible for refund.


2 Dated: 6-8-2018
By:- PAWAN KUMAR

As per my view, since supply completed in August for which purchases made in july and August month, refund can be filed thru. August gstr-1 return of itc on inputs used in supply of services to sez.


3 Dated: 7-8-2018
By:- DR.MARIAPPAN GOVINDARAJAN

I endorse the views of Shri Pawan Kumar.


4 Dated: 7-8-2018
By:- Ganeshan Kalyani

Exactly. The input procured in July is also used in making supply in the month of aug. Hence July input refund is eligible.


5 Dated: 7-8-2018
By:- TAHA CHECHATWALA

Thank you experts for your kind reply.


6 Dated: 7-8-2018
By:- KASTURI SETHI

Dear Querist,

My views are as under :-

  • Your client is talking of claim for refund of tax (input tax) on inputs or input services used in making zero- rated supplies and NOT talking of claim for refund of IGST paid on outward supplies to SEZ Unit.
  • Your client is to prove that ITC has been accumulated (unutilised) due to exports or supplies to SEZ Unit and NOT to prove the payment of IGST on outwards supplies.
  • Your client should be concerned with sufficient credit balance during the relevant tax period.
  • There is no requirement of one-to-one correlation of ITC invoice viz-a-viz Tax Invoice. There is no such sword.
  • In view of the above grounds, my answer to your query is "YES"
  • What I observe that First reply of Sh.Ganeshan Kalyani Ji is in consonance with my views.

7 Dated: 7-8-2018
By:- Ganeshan Kalyani

Thanks Sir for detailed reply. The querist would be happy with the solution / reply.


8 Dated: 8-8-2018
By:- Vijay Singh

There is a technical problem in filing the refund application for July month accumulated credit in this case.

At the time of filing the refund application in RFD-01A online, the amount of "NET ITC" for the said month is auto-populated from the electronic credit ledger for the month.

Though this is an editable field, the portal does not accept the net ITC column to have number more than the credit availed for the month as per Electronic Credit Ledger.

Illustration

Credit availed in July - total ITC 40,000/- . No outward SEZ supplu invoice raised in July.

Credit availed in August - ₹ 70,000/-. Outward sez supply raised in August.

So legally assessee is eligible to claim a refund of entire ITC of ₹ 1,10,000/-.

However at the time of filing RFD-01A, statement 5A does not allow to enter refund amount more than ₹ 70,000/-. Thus as of now, you can claim refund of only ITC availed in August.

Should wait for the portal to be reconfigured.


9 Dated: 8-8-2018
By:- TAHA CHECHATWALA

Thank You Mr Vijay Singh. We are facing the same problem as illustrated by you.


10 Dated: 16-8-2018
By:- Nandan Khambete

Refund claim of ITC accumulated in case of Exports and Supply to SEZ for *multiple tax periods* is made available on GST portal now.

Hence, you can file one refund claim for July & August.


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