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

Unjust enrichment exception limited to exports, requiring proof for refunds on supplies to SEZs to avoid denial.
Amendment substituting "export" for "zero-rated supplies" in the refund provision confines the unjust enrichment exception to exports only, so refunds for supplies to SEZs must be supported by proof that GST was not collected from the SEZ recipient or that the recipient did not claim input tax credit; suppliers should maintain invoices, recipient declarations, and professional certifications as evidence.