TaxTMI 
TaxTMI 
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
Refund on SEZ Unit
29 Jul 2019 
4 Replies 
2125 Views Asked by
Refund for GST paid on advances to SEZ units may be claimed as zero rated supply subject to refund conditions.
A supplier who paid CGST and SGST on advance receipts and later supplies to an SEZ unit as a zero rated supply without payment may claim refund under Section 54(8)(a), subject to the condition in Section 54(8)(e) and avoidance of unjust enrichment; refund under a provision for wrong assessment of place of supply was considered inapplicable since the tax was not "wrongfully" collected. Attention should be paid to the mode of tax discharge (DRC 03) and declarations in GSTR 1/GSTR 3B, and the jurisdictional officer may be consulted for sanction. (AI Summary)
A supplier who paid CGST and SGST on advance receipts and later supplies to an SEZ unit as a zero rated supply without payment may claim refund under Section 54(8)(a), subject to the condition in Section 54(8)(e) and avoidance of unjust enrichment; refund under a provision for wrong assessment of place of supply was considered inapplicable since the tax was not "wrongfully" collected. Attention should be paid to the mode of tax discharge (DRC 03) and declarations in GSTR 1/GSTR 3B, and the jurisdictional officer may be consulted for sanction. (AI Summary)