Input tax credit refund

[Govinda Raju]

Dear Sirs,

My first question is GST council announced during its recent meeting that Supplies to EOU are at zero rate until March 31st 2018. This has been reiterated through Notifications 47,48,49. However, suppliers are not worried of theirs refund of the same and they feel they will charge but we should not account and they can claim the same at their end. This is confusing.

My second question is on refund of Input tax of July, August and September. As per RFD-01 it suggests that we need to debit Electronic cash ledger and file for refund. However, GST1, 2 is yet to be allowed to file for August and September. Wouldn't they refund based on physical filing? If no why they have given dates for refund? Also, is there any announcement of Administrative wing for refunds in Karnataka Bangalore? please let me know.

Regards,

Govindaraju.S

[DR.MARIAPPAN GOVINDARAJAN]

In my view, refund is possible after filing return GSTR 3 which has not yet been materialized for July 2017.

AI Summary

Zero-rate supplies to EOU require suppliers to claim input tax refunds after filing the requisite returns. Supplies to Export Oriented Units are zero-rated for a transitional period, and suppliers should claim associated input tax credit refunds through the statutory refund procedure rather than rely on recipient-side adjustments. Refund recovery is contingent on filing the requisite returns and completing prescribed refund steps, including debiting the electronic cash ledger; until the periodic returns enabling refund claims are filed and processed, refunds remain procedurally unavailable.