TMI BlogClarification on certain issues related to refund.X X X X Extracts X X X X X X X X Extracts X X X X ..... by section 168 (1) of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGS T Act ), the issues are hereby clarified as detailed hereunder: 2. Status of refund claim after issuance of deficiency memo and re-credit of electronic credit ledger: 2.1 Para 7.1 of circular No. 59/33/2018-GST dated the 4th September, 2018, issued by the Central Board of Indirect Taxes and Customs, clarifies the intent of law in cases where a deficiency memo is issued in respect of a refund claim. In para 7.2 of the said circular, the practise being followed in the field formations was elaborated and it was clarified that show cause notices are not required to be issued (and consequently no orders are required to be issued in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be issued separately for cases in which such re-credit has already been carried out. 3. Allowing exporters who have received capital goods under EPCG to claim refund of IGST paid on exports: 3.1 Sub-rule (10) of Rule 96 of the KGS T Rules, (hereinafter referred to as said sub-rule ), restricts exporters from availing the facility of claiming refund of IGST paid on exports in certain scenarios. It was intended that exporters availing benefit of certain notifications would not be eligible to avail the facility of such refund. However, representations have been received requesting that exporters who have received capital goods under the Export Promotion Capital Goods Scheme (hereinafter referred to as EPCG Scheme ), should be al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said sub-rule. However, exporters who are receiving capital goods under the EPCG scheme, either through import in terms of notification No. 79/2017-Customs dated 13 th October, 2017 or through domestic procurement in terms of notification (17/2017) No. FD 47 CSL 2017, dated 19th October, 2017, shall continue to be eligible to claim refund of IGST paid on exports and would not be hit by the restrictions provided in the said sub-rule. All clarifications issued in this regard vide any Circular issued earlier are hereby superseded. 4. It is informed to all concerned that the above instructions shall be followed scrupulously. (SRIKAR M.S.) Commissioner of Commercial Taxes (Karnataka) Bengaluru - Circular - Trade Notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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