GST Refund amendment of section 54(8)(a) impact

[Pankaj Agarwal]

What shall be the impact Substitution by Central Goods and Services Tax (Amendment) Act, 2018 w.e.f.01-02-2019 before it was read as 'zero-rated supplies' in section 54(8)(a) of GST Act?

Earlier it read as:

Section 54

'(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to-

(a) refund of tax paid on zero-rated suppliesof goods or services or both or on inputs or input services used in making such zero-rated supplies;..

'

It is substituted as:

Section 54

'(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to-

(a) refund of tax paid on ¹[export] of goods or services or both or on inputs or input services used in making such ¹[exports];

..'

Please guide

AI Summary

Amendment to GST Act Section 54(8)(a) Affects Unjust Enrichment: Exports Exempt, SEZ Supplies Require Proof. The discussion focuses on the impact of an amendment to Section 54(8)(a) of the GST Act, effective from February 1, 2019, which changed the term 'zero-rated supplies' to 'exports.' This amendment affects the application of the principle of unjust enrichment. Previously, zero-rated supplies, including exports and supplies to SEZs, were exempt from this principle. Now, only exports are exempt. Supplies to SEZs must prove non-collection of GST to avoid unjust enrichment claims. Participants discuss the implications, emphasizing the need for documentation to support claims for SEZ supplies.