REFUND OF COMPENSATION CESS IN INVERTED DUTY STRUCTURE

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Can one claim refund of unutilised input tax credit of compensation cess paid on coal purchase, in application for inverted duty structure along with CGST and SGST refund.

AI Summary

Debate on Refund of Unutilized Input Tax Credit for Compensation Cess on Coal under Inverted Duty Structure A discussion on a forum regarding the refund of unutilized input tax credit of compensation cess paid on coal under the inverted duty structure. The consensus among participants is that compensation cess is generally non-refundable, as it can only be utilized against output cess. However, exceptions exist for zero-rated exports, where refunds may be claimed. Experts suggest considering advance ruling for clarity, although existing circulars already provide guidance. The discussion highlights the complexity of claiming refunds in the context of GST laws and the specific provisions related to compensation cess.