FAQs on GST – Refunds, Demand, and Recovery - Blog By Avalara

Published By Avalara India, 19 Sep 2017

FAQs on GST – Refunds, Demand, and Recovery - Blog By Avalara

  1. What is a refund?

As discussed in section 54 of the CGST/SGST Act, a “refund” includes:

  • any balance amount in the electronic cash ledger so claimed in the returns

  • tax paid by specialized agencies of the United Nations or any multilateral financial institution and organization notified under the United Nations (Privileges and Immunities) Act, 1947, consulate or embassy of foreign countries on any inward supply; and

  • any unutilized input tax credit (ITC) in respect of:

    • zero-rated supplies made without payment of tax

    • an accumulation of credit due to a higher rate of tax on inputs than on the output supplies (other than nil rated or fully exempt supplies)

  1. Can an unutilized ITC be given as a refund when goods exported outside India are subjected to export duty?

A refund of an unutilized input tax credit is not granted in cases where the goods exported out of India are subject to export duty – as per the second proviso to section 54 (3) of the CGST/SGST Act.

  1. Are purchases made by embassies or the U.N. taxed or exempted?

Supplies to embassies or U.N. bodies will be taxed, however, these entities can claim these taxes later as a refund per the terms of section 54 (2) of the CGST/SGST Act. Embassies or U.N. bodies must file claims in the manner prescribed under CGST/SGST refund rules....
Read more at - https://www.avalara.com/in/2017/09/12/faqs-gst-refunds-demand-recovery/ 
About Avalara :
Avalara is an experienced application service provider (ASP) and partner of authorized GST Suvidha Providers (GSPs). To understand how our cloud-based application Avalara TrustFile GST can help you with GST compliance automation, contact us through https://www.avalara.com/in/products/gst-returns-filing