TaxTMI 
TaxTMI 
Refund of accumulated -ITC of Compensation Cess
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....efund of accumulated -ITC of Compensation Cess<br> Query (Issue) Started By: - Prem Choudhary Dated:- 25-2-2019 Last Reply Date:- 27-2-2019 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Dear Expert Please advice for refund provision if any for following Case:- The manufacturer are producing Cement and Clinker under HSN-2526 and Sales within in India. Cement is taxable @28% ( SGST-14% &....
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.... CGST-14%) and no any GST Compensation Cess is leviable. However in production of Cement, Coal is require to running the Kilan(generating the heat) and on procurement of Coal Cess is leviable @ ₹ 400/- per tone. As per provision of Act, Compensation Cess can be utiliase for payment of out put Cess only. Hence Compensation Cess is going to accumulation. Further, Whether answer will be same ....
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....if manufacturer is exporting as well selling Cement and Clinker within India. Reply By KASTURI SETHI: The Reply: Dear Querist, Answer is not the same. Compensation cess accumulated because final product is not subject to levy of compensation cess. (i) If no compensation cess is leviable on final product, but compensation cess has been availed on inputs , refund of accumulated ITC can be claim....
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....ed. Circular no. 45/19/2018-GST dated 30.5.18 refers.You cannot claim refund of compensation cess by making payment of IGST via export.In other words, you cannot claim refund of compensation cess in case of zero rated supply on payment of IGST. Compensation cess accumulated because of export (ii) Refund of compensation cess paid on goods exported is admissible. Read Section 16(3)(b) of IGST Act,....
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.... 2017. This issue has been clarified vide C.B.I. & C. Circular No. 79/53/2018-GST, dated 31-12-2018. (Point No.9 is relevant). Reply By Prem Choudhary: The Reply: Thank you Sethi ji for providing reference of provision and clarity, We have gone through the Circular No.-45/19/2018-GST Point no-05 and your reply pint no-(i), Kindly more clarify is require, In our Case Cement sale is within Ind....
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....ia and having accumulated Compensation Cess ITC. Whether we are eligible to claim refund of accumulated compensation Cess ITC ? Reply By KASTURI SETHI: The Reply: In view of Board's clarification, you are eligible for refund claim of Compensation Cess as your final product is cement on which cess is not leviable. Reply By Prem Choudhary: The Reply: Sir As per Circular, The accumulated Cre....
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....dit ( including Cess) eligible for refund only in case of "inverted duty structure" o. But in Cement has no such scenario. please advice, Whether any interpretation for refund of accumulated Compensation Cess other then Export or inverted duty structure. Reply By KASTURI SETHI: The Reply: I have explained as per best of my capacity.<br> Discussion Forum - Knowledge Sharing ....