Dear Expert
Please advice for refund provision if any for following Case:-
The manufacturer are producing Cement and Clinker under HSN-2526 and Sales within in India. Cement is taxable @28% ( SGST-14% & CGST-14%) and no any GST Compensation Cess is leviable. However in production of Cement, Coal is require to running the Kilan(generating the heat) and on procurement of Coal Cess is leviable @ ₹ 400/- per tone.
As per provision of Act, Compensation Cess can be utiliase for payment of out put Cess only. Hence Compensation Cess is going to accumulation.
Further, Whether answer will be same if manufacturer is exporting as well selling Cement and Clinker within India.
Manufacturer Seeks Refund for Accumulated ITC on Compensation Cess Paid for Coal; Clarification Sought on Domestic Sales Eligibility A manufacturer producing cement and clinker, taxable at 28% GST without any compensation cess, inquires about the refund of accumulated ITC of compensation cess paid on coal used in production. The expert clarifies that if no compensation cess is levied on the final product but availed on inputs, a refund can be claimed, referencing Circular No. 45/19/2018-GST. For exports, a refund is admissible under Section 16(3)(b) of the IGST Act, 2017. The manufacturer seeks further clarification on eligibility for refunds when sales are domestic, questioning the applicability beyond exports or inverted duty structures. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
