Question19:
We are the fabric manufacturer under HSN 5209. We use coal for manufacturing process. We are paying 400 per MT of coal purchase as Compensation Cess to Coal India. Our export ratio is 45% of total turnover. We export goods without payment of duty under LUT. Whether we can claim up to 45% of Compensation paid as refund. regards
 

Answer:
As per section 9(2) of GOODS AND SERVICES TAX COMPENSATION TO STATE(S) ACT, 2017, all the provisions in relation to GST return and refunds in CGST act for Central tax shall apply in relation to Compensation cess. Said section is reproduced here under;
Section 9: Returns, payments and refunds.
(2) For all purposes of furnishing of returns and claiming refunds, except for the form to be filed, the provisions of the Central Goods and Services Tax Act and the rules made thereunder, shall, as far as may be, apply in relation to the levy and collection of the cess leviable under section 8 on all taxable supplies of goods or services or both, as they apply in relation to the levy and collection of central tax on such supplies under the said Act or the rules made thereunder.  
Thus, the person shall apply for refund in FORM GST RFD-01 on Common Portal under Rule 89 of CGST Rules, 2017 The refundable amount of accumulated ITC including Compensation Cess due to zero rated supplies (export of goods) will be calculated as per formula specified under sub-rule (4) of the above said Rule.  
 

(Reply dt.18/01/2018)