TMI BlogRefund of unutilised Input Tax Credit (ITC)X X X X Extracts X X X X X X X X Extracts X X X X ..... d person may claim refund of unutilised input tax credit at the end of any tax period. A tax period is the period for which return is required to be furnished. Thus, a taxpayer can claim refund of unutilised ITC on monthly basis. Refund of unutilised input tax credit is allowed only in following two cases a) Zero rated supplies made without payment of tax : As per Section 16(3) of the IGST Act, 2017, a registered person making zero rated supply is eligible to claim refund under either of the following options, namely: Supply of 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 unutil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of zero-rated supplies The application filed for refund of unutilized ITC on account of zero-rated supplies (with payment of tax or without payment of tax under Bond/LUT) has to be accompanied by documentary evidence as may be prescribed to establish that a refunds due to the applicant; and such documentary or other evidence (including the documents referred to in section 33 of the CGST Act, 2017 ) 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. Rule 89(2) of the CGST Rules, 2017 , s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be electronically credited to the claimant s bank account. The rules also prescribe the provisional refund will not be granted to if the person claiming refund has, during any period of five years immediately preceding the tax period to which the claim for refund relates, been prosecuted for any offence under the Act or under an earlier law where the amount of tax evaded exceeds two hundred and fifty lakh rupees; It may also be noted that by default, the refund is to be credited to the Consumer Welfare Fund, except in the cases below:- (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aggregate of the payments received during the relevant period for zero-rated supply of services and zerorated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zerorated supply of services for which the supply of services has not been completed during the relevant period; (E) Adjusted Total turnover means the turnover in a State or a Union territory, as defined under sub-section (112) of section 2 , excluding the value of exempt supplies other than zero-rated supplies, during the relevant period; (F) Relevant period means the period for which the claim has been filed. Refund of ITC on account of invert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 5208 to 5212 Woven fabrics of cotton 4 5309 to 5311 Woven fabrics of other vegetable textile fibres, paper yarn 5 5407, 5408 Woven fabrics of manmade textile materials 6 5512 to 5516 Woven fabrics of manmade staple fibres 7 60 Knitted or crocheted fabrics [All goods] 8 8601 Rail locomotives powered from an external source of electricity or by electric accumulators 9 8602 Other rail locomotives; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f accumulated ITC (where such accumulation is on account of inverted duty structure) has to be accompanied by a statement containing the number and date of invoices received and issued during a tax period. Rule 89(3) of CGST Rules, 2017 also provide that where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant in an amount equal to the refund so claimed. Provisions similar for refund of accumulated ITC for both types of Refund Applicants (suppliers making zero-rated / inverted duty supplies) Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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