TaxTMI 
TaxTMI 
REFUND OF ITC OF CESS COMPONENT
X X X X Extracts X X X X
X X X X Extracts X X X X
....EFUND OF ITC OF CESS COMPONENT<br> Query (Issue) Started By: - NAMAN DOKANIA Dated:- 6-1-2026 Last Reply Date:- 11-1-2026 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>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 t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat 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. Reply By Sooraj B: The Reply: He can utilize the Cess amount against any future output tax liability under Cess . In case, there is no output tax liability under Cess, the ITC will lapse . There is no provision for refund of accumulated ITC excep....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t on account of inverted duty structure ( GST rate on inputs is higher than that output ) and on account of export of goods/services without payment of IGST based on LUT . Reply By Ryan Vaz: The Reply: ? Refund of Compensation Cess paid in cash is NOT admissible merely because the corresponding ITC appeared later in GSTR-2B. ? Once the invoice reflects in GSTR-2B, ITC of Compensation Cess can b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e availed, but its utilisation is restricted only against output Compensation Cess liability. ? If Mr X has future Cess liability, the credit can be carried forward and utilised-refund is not allowed. Reply By Sadanand Bulbule: The Reply: Mr. X cannot claim refund of such Cess, as excess tax paid due to non-reflection in GSTR-2B is neither refundable nor adjustable under the CGST Act, and the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nly remedy is availing ITC when eligible, not cash refund. Reply By KASTURI SETHI: The Reply: Refund not admissible. Tax-paid character is at par whether paid in cash or through Electronic Credit Account. There are also case laws to this effect pertaining to pre-GST era. On the other hand, the buyer cannot be punished for the offence committed by the supplier. Reply By KASTURI SE....
X X X X Extracts X X X X
X X X X Extracts X X X X
....THI: The Reply: Dear Querist, In case a huge amount is involved, you can take shelter of Article 226 of the Constitution and file writ petition with jurisdictional High Court. Only High Court and Supreme Court can go beyond laws in the interest of fair social justice. The purpose of framing any law is to provide fair social justice. If the law is a hurdle, that law needs to be amended. Reply B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y Shilpi Jain: The Reply: Refund is not possible as per the provisions. You should evaluate other possibilities by consulting with a professional in this area in case the amount involved is huge.<br> Discussion Forum - Knowledge Sharing ....