TaxTMI 
TaxTMI 
Can a Trader claim Refund of Accumulated Compensation Cess on Export under LUT
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....an a Trader claim Refund of Accumulated Compensation Cess on Export under LUT<br> Query (Issue) Started By: - NEHA GARDI Dated:- 18-8-2020 Last Reply Date:- 29-12-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Respected All, Kindly guide me,whether a trader can claim refund of accumulated Compensation cess on sale done to SEZ under LUT? Specifically i cannot find anywhere that it i....
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....s allowed only to manufacturer. Thanks in Advance Reply By KASTURI SETHI: The Reply: It is allowed. "The concept of merchant or manufacturer exporter has become irrelevant under the GST regime. The procedure in respect of the supplies made for export is same for both merchant exporter and a manufacturer". This is an extract from FAQ issued by the Board. For further clarification als....
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....o go through Board's Circular No.1/1/2017-Compensation Cess dated 26.7.17. Emphasis is on para no.8 of the circular. Reply By NEHA GARDI: The Reply: Thanks you Sir Reply By Kashish Gupta: The Reply: Dear Neha ji, As we know that the refund of unutilized ITC would be allowed only in the following cases: * Zero rated supplies (export or supply to SEZ) made without payment of IGST under bo....
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....nd or LUT. * Inverted duty structure (GST rate of inputs being higher than rate on output supplies other than nil rated or fully exempt supplies). The refund of accumulated ITC of compensation cess could be claimed by satisfying the following conditions: * The registered person would have paid compensation cess on inward supply of goods. * The inward goods would have utilized for making out....
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....ward supplies. * The final goods would have been exported under bond or LUT without payment of IGST. * The compensation cess would have been availed as ITC in GSTR 3B return. * The final goods may or may not leviable to compensation cess. * Other conditions for claiming refund under section 54 of CGST Act. Further, the department has provided clarity vide Circular No.1/1/2017-Compensation....
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.... Cess dt. 26th July, 2017 regarding this issue. Conclusion I can say that a trader can file GST Refund on account of supplies made to SEZ unit/ SEZ developer (without payment of tax) under Refund Tab on the GSTN Portal. Moreover, if he wants to claim refund of accumulated compensation cess and not of the IGST, then he should edit the Net Input Tax Credit column. The concerned Assistant Commissio....
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....ner, if satisfied may release the funds, else he may give a deficiency memo asking to provide further information. Reply By NEHA GARDI: The Reply: Thank you Sir.<br> Discussion Forum - Knowledge Sharing ....