Refund on SEZ Unit

[Vinay Kumar]

One of our clients has received an advance from the customer say as on October 2018. As per GST law, GST is to be discharged on receipt basis in case of the supply of services. Accordingly, client has discharged CGST and SGST through DRC-03. Now at the time of raising an taxable invoice the customer becomes an SEZ unit and client is opting for Zero rated supply without payment of taxes. Whether we are eligible for claiming refund of CGST and SGST paid as we cannot adjust GST paid on advance against subsequent invoices

AI Summary

Client Seeks Tax Refund for Zero-Rated SEZ Supply; Experts Debate Eligibility Under CGST Act Section 54(8) Provisions. A client received an advance payment in October 2018 and paid CGST and SGST as required by GST law. Later, the client opted for zero-rated supply to an SEZ unit, raising questions about eligibility for a refund of the taxes paid. One expert confirmed eligibility under Section 54(8)(a) of the CGST Act, emphasizing the need to avoid unjust enrichment. Another participant suggested filing under Section 54(8)(d) due to the inter-state nature of the supply. Clarification was sought on the declaration made in GSTR-1 and GSTR-3B, as the payment was made via DRC-03.