Question16:
I have two queries:
1. Our 1st unit is situated in Noida Special Econmic Zone and all supplies are
zero rated supply against submission of Bond. Now some of suppliers do not
submit bonds and supply goods/ services with GST. Can we file refund application
against such GST paid? If yes, In which Form?
2. One of our unit is having rooftop solar plant which is non- gst supplies. Can
we claim refund of inputs?
Answer:
Point wise reply to your question is a sunder;
1. Section 16 of IGST Act, 2017 makes supplies to SEZ zero rated. This means
that no tax is required to be paid on supplies to SEZ, in other words, supplies
can be made against LUT/Bond. However, if supplies are made on payment of
integrated tax, then as per Section 54 of CGST Act, 2017 read with Rule 89 of
CGST Rules, 2017 supplier of goods can claim refund of integrated tax paid on
supplies to SEZ. No refund under GST is entitled to unit located in SEZ even if
he receives tax paid goods. At present supplier of goods can file refund claim
in FORM GST RFD-01A manually on receipt of an acknowledge from designated
officer in the SEZ that goods have been duly received in the Zone for the
authorised operation. The claim will be filed with jurisdictional Central Tax
authority of the supplier.
2. We have understood your question as follow This UNIT is located in domestic
area your outward supply is not taxable but your inward supply is taxable.in this
case it is a matter of refund of GST for inverted ratio of tax. Your attention
is invited to section 54(3) The same is as follow Section 54: Refund of tax.
(Relevant Rules 89 to 96A) (1) === (2) === (3) Subject to the provisions of
sub-section (10), a registered person may claim refund of any unutilised input
tax credit at the end of any tax period: Provided that no refund of unutilised input
tax credit shall be allowed in cases other than''
(i) zero rated supplies made without payment of tax;
(ii) 'where the credit has accumulated on account of rate of tax on inputs
being higher than the rate of tax on output supplies (other than nil rated or
fully exempt supplies), except supplies of goods or services or both as may be
notified by the Government on the recommendations of the Council: Since the
refund will be given if the tax paid outward supply is lower then the ITC
availed therefore it will not apply to exempted product In case of exempted
product Section 17 will not permit credit so the question of refund of ITC
does't arise. . (Reply Dt. 03/01/2018)