Refund of credit accumulated due to tax rate difference

[Mr Rao]

sir,

A party has filed application for refund of credit accumulated due to tax rate difference under GST. The party's inputs attract higher rate of duty than the rate of duty attracted on his output and thus he accumulated credit. Is he eligible for refund in cash under GST. As of now GST portal for refunds is not working and hence filed manually for sanction of refund. Is he eligible for the refund of the amount in cash even if he files manually. What is the time period for sanction of the same and under what provisions ? What are the documents need to be verified for sanction of the refund ? Experts, Pl.throw light on this subject as it is confusing. Somebody is telling that such refund to be sanctioned within 7 working days.

AI Summary

Clarification Sought on GST Refund Process for Input Tax Credit and Compensation Cess on Coal Inputs A party sought a refund for credit accumulated due to a tax rate difference under GST, where input duties were higher than output duties. They filed manually as the GST portal was non-functional. An expert clarified that manual refund procedures are outlined in specific circulars and notifications, applicable mainly to exports using LUT/Bond without IGST payment. The party clarified the issue involved GST compensation cess on input coal, not exports. Another expert noted that Input Tax Credit for cess is available if applicable to the final product. The discussion provided valuable insights into the refund process.