TMI BlogGST Refund amendment of section 54(8)(a) impactX X X X Extracts X X X X X X X X Extracts X X X X ..... What shall be the impact Substitution by Central Goods and Services Tax (Amendment) Act, 2018 w.e.f. 01-02-2019 before it was read as zero-rated supplies in section 54(8)(a) of GST Act ? Earlier it read as: Section 54 (8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o- (a) refund of tax paid on zero-rated suppliesof goods or services or both or on inputs or input services used in making such zero-rated supplies;.. It is substituted as: Section 54 (8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to- (a) refund of tax paid on 1 [ e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport ] of goods or services or both or on inputs or input services used in making such 1 [ exports ] ; .. Please guide - Reply By Shilpi Jain - The Reply = Supplies to SEZ will have to prove the fulfillment of the condition of unjust enrichment after the amendment. However in case of exports that is not required. - Reply By KASTURI SETHI - The Reply = Difference between both legal terms Zero rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d supply is tax free but 'exported' implies duty paid. Hence supply to SEZ is not hit by the principles of unjust enrichment. This existed in pre-GST era also. - Reply By Shilpi Jain - The Reply = SEZ supplies also will require proving that you have not collected tax from SEZ since SEZs are eligible for credit. So certificate will be required. - Reply By Padmanathan Kollengode - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = I concur with the views of Shilpi Ma'am. Section 54(8) of CGST Act enumerates the cases where the principle of unjust enrichment does not apply for the purposes of payment of refund. Earlier, zero-rated supplies of goods or services was one such case. According to Section 16(1) of IGST Act , 'zero-rated supply' includes both exports of goods or services, and supplies made to an SEZ u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit or SEZ developer. Now, as per the amended section 54(8) , the principle of unjust enrichment will not apply only in case of refund claim arising out of export of goods or services. - Reply By Shilpi Jain - The Reply = SEZ are taxpayers under GST. They can also claim credit. Hence, it is required to be proved that for supplies made to SEZ the supplier has not received the GST portion in the inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice. - Reply By Shilpi Jain - The Reply = If the supplier has received GST from the SEZ recipient then he cannot claim another benefit by claiming refund. - GST Refund amendment of section 54(8)(a) impact - Query Started By: - Pankaj Agarwal Dated:- 24-2-2024 Last Replied Date:- 10-3-2024 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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