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

Refund of input tax credit: cash refund eligibility hinges on whether compensation cess is leviable on the final product.
A taxable person applied for cash refund of accumulated input credit from a tax rate difference and filed manually while the portal was down. Circular no. 17/2017 and Notification no. 55/2017 provide a manual refund procedure but only for exporters using LUT/bond without payment of IGST with unutilized input credit. Accumulation due to compensation cess requires that input tax credit of cess is available only if the cess is leviable on the final product; entitlement to refund of such cess depends on that condition. Time limits and documentary verification requirements are not resolved in the exchange.