Refunds

Refund of balance in the electronic cash ledger which is a concept similar to PLA account can be claimed by registered taxable person.

Refund to be claimed through the GSTR-3 – Monthly return to be filed by tax payer (Sl. No. 12 – Refunds claimed from cash ledger).

Refund of unutilized input tax credit shall be allowed only in twoscenarios.

Refund of unutilized input tax credit shall be allowed only for Exports including Zero rated supplies (SEZ Supplies). The Ministry has confirmed that refund of 90% of the duties paid by exporters in the process of manufacturing items for export would be made within a period of seven days under the Goods and Services Tax (GST) regime on provisional basis. The remaining 10% refund will be made after verifications by tax authorities.

Credit accumulation due to inverted duty structure.

Supply of goods and/ or services to or by a SEZ developer or an SEZ unit, shall be deemed to be a supply of goods and/or services in the course of inter-State trade or commerce and would be Zero rated supplies.

However, probably as it exists today such upfront exemptions could be subjected to certain conditions only after fulfilling these conditions it is likely that the SEZs would enjoy the abinitio exemption else, they would have to opt for refund route

Where tax payer pays one tax for another

(a) CGST/SGST – Instead of IGST

(b) IGST – Instead of CGST/SGST

Refund to be claimed of the wrongly paid tax & the appropriate tax to be paid to the Government without interest

Casual taxable persons or Non-resident taxable persons are required to make an advance payment of estimated tax liability at time of registration application

Refund of tax, if any excess paid shall be allowed subjected to that the dealer must file all the returns.

Tax refund for international tourist scheme provide an opportunity to foreign tourist to buy goods manufactured during their stay in any country and claim refund of the tax suffered on such goods at the time of their exit from the country. In India, it is expected that the scheme will be implemented through the retailer registered for the purpose of this scheme.