Refund of Cess

[Bharat Cholleti]

Dear sir,

Accumulated credit of cess is eligible to claim refund, please clarify

[Rajagopalan Ranganathan]

Sir,

Please specify the nature of cess accumulated.

[Shilpi Jain]

The refund can be claimed in case you have made a zero rated supply without payment of tax i.e. under LUT.

[KASTURI SETHI]

I agree with the view of Madam Shilpi Jain.

[KASTURI SETHI]

Compensation cess will not be charged on goods exported under bond or LUT. See circular no.1/1/2017-Compensation Cess dated 26.7.17.

[Himansu Sekhar]

No refund is allowable if you are not exporting any goods

[Bhavika Chothani]

Refund is available only if it relates to export of goods. Else you cannot take the refund

AI Summary

Eligibility for GST Cess Refund Tied to Zero-Rated Exports Under LUT; No Refund Without Export. A query was raised regarding the eligibility to claim a refund on accumulated cess under the Goods and Services Tax (GST). Respondents clarified that a refund is possible if the cess is related to zero-rated supplies made without tax payment under a Letter of Undertaking (LUT). It was noted that compensation cess is not charged on goods exported under bond or LUT, referencing a specific circular. However, it was emphasized that no refund is available if the goods are not exported, indicating that the refund eligibility is contingent on export activities.