TaxTMI 
TaxTMI 
Some trader paid gst on import of salt at Mundra port in Feb.,2019. The customs charged GST thereon. Can the trader claim refund of GST as the burden of GST was not shifted while selling the same in India?
Refund of gst
01 Feb 2020 
9 Replies 
1399 Views Asked by
Unconstitutional collection of tax: recoverability of amounts charged without statutory authority, despite lack of burden shifting.
Refund of GST paid on importation of an exempt good depends on whether the charge was made without legal authority. A refund claim based only on non passing of the tax burden is not a valid ground, but amounts collected unconstitutionally or without statutory authority are recoverable as unauthorised payments; such recoveries are not ordinarily subject to unjust enrichment objections if the payer bore the cost, and limitation periods applicable to valid taxes may not bar recovery of unauthorised collections. (AI Summary)
Refund of GST paid on importation of an exempt good depends on whether the charge was made without legal authority. A refund claim based only on non passing of the tax burden is not a valid ground, but amounts collected unconstitutionally or without statutory authority are recoverable as unauthorised payments; such recoveries are not ordinarily subject to unjust enrichment objections if the payer bore the cost, and limitation periods applicable to valid taxes may not bar recovery of unauthorised collections. (AI Summary)