TaxTMI 
TaxTMI 
Refund of unutilised input tax credit
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....efund of unutilised input tax credit<br> Query (Issue) Started By: - Yatin Bhopi Dated:- 31-10-2017 Last Reply Date:- 15-11-2017 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear expert We are procuring goods locally on the payment of SGST+CGST and supplying goods to SEZ without payment of taxes under LUT. Now we are not able to utilise ITC paid on purchses since there is no other taxa....
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....ble supply. Please let me know whether is there any provision of claiming refund claim of unutilised ITC. Reply By MARIAPPAN GOVINDARAJAN: The Reply: In my view, no refund is possible. Reply By Yatin Bhopi: The Reply: is there any way to overcome this situation. Reply By Rajagopalan Ranganathan: The Reply: Sir, As per Section 16 (1) (b) of IGST Act, 2017 "supply of goods or services o....
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....r both to a Special Economic Zone developer or a Special Economic Zone unit" is "zero rated supply." According to Section 16 (3) of the same Act "a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:-- (a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such condit....
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....ions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of....
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.... section 54 of the Central Goods and Services Tax Act or the rules made thereunder. Reply By Yatin Bhopi: The Reply: Thanks a lot Sir Reply By Ramaswamy S: The Reply: Supplies to SEZ is a physical export. Since all the supplies are only to SEZ, suggest to pay the IGST on the goods supplied to SEZ instead of LUT. Refund of the IGST paid is allowed and is easier relatively compared to the refund....
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.... of unutilised ITC. Regards S.Ramaswamy Reply By Yatin Bhopi: The Reply: Dear Sir Since CGST+SGST credit is accumulated, we can not able to utilise it to pay IGST. In this situation as mentioned by Mr. Rajagopalan Ranganathan Sir only option available is to take refund of unutilised input tax credit. Reply By Ramaswamy S: The Reply: CGST and SGST can be utilised for payment of IGST. The pa....
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....yment of IGST utilising the CGST and then SGST is allowed. its payment of IGST for exports and hence refund of the IGST paid on clearances to SEZ is allowed. It is always simpler to get the refund of outward IGST on exports when compared to refund of unutilised Input Credit. IGST can be utilised for payment of IGST, CGST and SGST in that order/ Only Cross utilisation of CGST and SGST is not a....
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....llowed. Regards S.Ramaswamy<br> Discussion Forum - Knowledge Sharing ....