Can a Trader claim Refund of Accumulated Compensation Cess on Export under LUT

[NEHA GARDI]

Respected All,

Kindly guide me,whether a trader can claim refund of accumulated Compensation cess on sale done to SEZ under LUT? Specifically i cannot find anywhere that it is allowed only to manufacturer.

Thanks in Advance

AI Summary

Traders Can Claim Refund on Compensation Cess for SEZ Sales Under LUT; Circular No.1/1/2017 Clarifies ITC Refunds A trader can claim a refund of accumulated compensation cess on sales to Special Economic Zones (SEZ) under a Letter of Undertaking (LUT). The distinction between merchant and manufacturer exporters is irrelevant under the GST regime, and the refund procedure is the same for both. Refunds of unutilized Input Tax Credit (ITC) are allowed for zero-rated supplies made without IGST payment under bond or LUT. Conditions include paying compensation cess on inward supplies, utilizing these for outward supplies, and availing ITC in GSTR 3B returns. The process is clarified in Circular No.1/1/2017-Compensation Cess.