GST INPUT REFUND ON SUPPLIES MADE TO SEZ UNIT

[TAHA CHECHATWALA]

Dear All,

Our client is providing services to a SEZ unit and accordingly claims refund of GST paid on inputs utilized for the purpose of such services. Our client files its GSTR 1 on monthly basis and accordingly claims refund of tax paid on inputs for that particular month.

My query is, if suppose our client provides services in the month of july and made purchases for that purpose but the project does not get completed in july and continues in the month of august. Now in august also our client made some purchases and paid tax on them. Project is completed and sale invoice has been raised in august.

Now while making application for refund can our client claim refund of input tax paid on purchases made in july though sale invoice will be raised in the month of august.

AI Summary

Refund of Input Tax Credit for SEZ supplies allowed based on accumulated unutilised credit, despite invoice matching not being required.
Supplies to an SEZ that are zero-rated allow refund of input tax credit accumulated on inputs and input services used for those supplies; entitlement is determined by unutilised credit attributable to the zero-rated supply rather than strict invoice-to-invoice matching. Although credits from multiple tax periods may be refundable together, the refund portal (RFD-01A) may restrict entry to the month-specific net ITC, creating a technical barrier to claiming aggregated period refunds until the portal is reconfigured.