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TMI BlogSITUATIONS LEADING TO REFUND CLAIMSX X X X Extracts X X X X X X X X Extracts X X X X ..... rtaking, though exempt from payment of tax. (ii) Every person making claim of refund on account of zero rated supplies has two options, either he can export under Bond/LUT and claim refund of accumulated Input Tax Credit; or he may export the goods and/or services on payment of Integrated tax and claim refund of the tax paid as per the provisions of Rule 96 of the CGST Rules, 2017. The concept here is that the goods and services are to be exported but not the taxes incurred by the registered taxpayers in manufacture and supply of goods or for providing services, so that India as a country remains competitive in global world trade. For example, a registered manufacturer purchases his inputs and incurs tax liability on his purchases. When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the recipient does not avail ITC on such supply. (IV) Purchases made by Foreign organizations - All foreign establishments such as those of United Nations, Embassies and Consulates of other nations, having establishments geographically located in India are also considered to be foreign territories for the purpose of taxation. Section 55 of the CGST Act, 2017 provides for refund of tax paid on notified supplies received by UN bodies and embassies and other international organisations notified by the Government. A taxable person making supplies to such bodies would charge the tax due and remit the same to government account. However, the UN bodies and other notified entities can claim refund of the taxes paid by them on their purchases. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of tax should deposit the same to the government. (IX) Refund of tax paid on advances via issuance of Refund vouchers - It generally happens that during a contract, suppliers demand a minimum confirmation advance from the buyer to supply the desired goods and services. The advance paid by the recipient of goods and services to the supplier is subjected to GST. However, when the contract is not executed and cancelled, the supplier generates refund voucher and credits the account of the supplier the amount of advance received, excluding the GST paid on such advance. Here the receiver can claim back the tax amount paid to that supplier from GST Department as refund by following the due process, as there is no supply. (X) Refund of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then such taxpayer shall pay IGST first and then will be eligible to get the refund of CGST and SGST paid earlier. A vice-versa scenario is also possible. (XIII) Refund of pre-deposit- For filing appeal against any order before the Appellate Authority or Tribunal, the appellant has to make pre-deposit of the amount stipulated in the relevant provisions of CGST Act, 2017. In case the Appellate Authority or the Tribunal decides the case in favour of the appellant and such order is accepted by the Department, i.e. no appeal is filed against such order, then the amount of pre-deposit can be claimed by the appellant as refund. Section 115 of the CGST Act, 2017 also provides for payment of interest on such pre-deposit. (XIV) Refund on account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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