NO GST REFUND - AVAILS DRAWBACK IN RESPECT OF CENTRAL TAX

Dear Readers,
There is a lot of confusion among all the assessees and also professional regarding allowability of GST refund if assessee has availed drawback in respect of Central tax. To help the assessees, department has clarified this matter vide its circular, text of which is as follows:


The third proviso to sub-section (3) of section 54 of the CGST Act states that no refund of input tax credit shall be allowed in cases where the supplier of goods or services or both avails of drawback in respect of central tax. 

This has been clarified in paragraph 8.0 of Circular No. 24/24/2017 – GST, dated 21st December 2017. In the said paragraph, reference to “section 54(3)(ii) of the CGST Act” is a typographical error and it should read as “section 54(3)(i) of the CGST Act”. It may be noted that in the said circular reference has been made only to central tax, integrated tax, State /Union territory tax and not to customs duty leviable under the Customs Act, 1962. Therefore, a supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision. It is further clarified that refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax.

Comments

  1. Unknown4 July 2019 at 05:18

    Dear all, We are exporting coffee and have claimed higher rate of duty drawback for July'17 to Sep'17. And we have availed ITC also for the respective months. So are we eligible to claim ITC in case the company has availed higher rate of duty drawback?

    ReplyDelete

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