CST refund after payment

[madhavvan n]

for claiming reimbursement of CST in case of an EOU is it necessary that only after payments of entire amounts to suplliers can the cst refund be claimed pls clarify

[RadheyShyam Mangal]

Normally the cst reimbursement is made after payment of entire amount of the invoice, however in case payment is to be made in installment, then claim can be made within 6 months from the quarter in which final payment is made.in case of deduction in invoice it is advisable to get revised invoice for reduced amount. For the invoices for which payment in full is not made, u can consider for supplementary claim after full payment, which may be considred as per para 9.4 of the HBP vol I

[Rama Krishana]

See the condition no. (iv) of the Appendix 14-I-1, which states that, "Claims shall be admissible only if payments are made through the bank accounts maintained by EOU / EHTP/ STP unit or DD emanated from its accounts." So an EOU has to make payment before claiming refund of CST.

AI Summary

CST Refund for EOUs: Full Supplier Payment Required, Claims Within Six Months Post Final Installment A query was raised about claiming a Central Sales Tax (CST) refund for an Export Oriented Unit (EOU) and whether full payment to suppliers is necessary before claiming the refund. One response indicated that CST reimbursement typically occurs after full invoice payment. However, if payments are made in installments, claims can be submitted within six months from the quarter of the final payment. Another response highlighted that claims are only admissible if payments are made through the EOU's bank accounts, as per specific regulatory conditions.