TaxTMI 
TaxTMI 
Mr X, deals in Trading of coal whereby Cess was on quantity traded. He has purchased coal but the supplier did not file the return on time due to which the same did not appeared in the GSTR-2B and Mr X had to pay Cess on that purchase in cash. Now in next month 2B the same was appearing. How can Mr X take the refund of that Cess because in no case he can adjust that ITC.
REFUND OF ITC OF CESS COMPONENT
06 Jan 2026 
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Compensation cess on coal purchases: refund not permitted; credit only usable against future cess liability.
Compensation cess paid in cash due to supplier non-reflection in GSTR-2B is not refundable; the purchaser can claim input tax credit when the invoice appears, but that credit is restricted to utilisation only against future output compensation cess and will lapse if no such liability arises. Refund of accumulated ITC is confined to specific statutory scenarios like inverted duty relief or zero-rated exports. (AI Summary)
Compensation cess paid in cash due to supplier non-reflection in GSTR-2B is not refundable; the purchaser can claim input tax credit when the invoice appears, but that credit is restricted to utilisation only against future output compensation cess and will lapse if no such liability arises. Refund of accumulated ITC is confined to specific statutory scenarios like inverted duty relief or zero-rated exports. (AI Summary)