Question 39:
We have one depot registered under GST. We have supplied goods from our manufacturing unit to depot on payment of GST. Inadvertently we have not claimed ITC at depot for the supplies made from July-17 to February-18. Further, we had cleared goods from depot to customer on payment of GST. We had paid GST liability on monthly basis without any default by cash payment ( from Cash ledger).
In the Month of March during reconciliation we had availed ITC at depot for all the supplies made from manufacturing unit during July-17 to Februay-18. This resulted to huge accumulation of IGST credit at depot. We cannot utilize this credit at depot in near future.
Now please advise for Refund of above accumulated IGST Credit.
Further, it is to inform that we have neither covered under invert tax structure nor making any out ward export supply at our depot.

Answer
Section 54 of CGST Act relating to Refund of tax provides 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
As your case is not covered under any of the above two situations therefore you are not eligible for refund of unutilized credit. The only remedy available to you is to carry forward the ITC claimed and utilize it for paying any future tax liability. (reply dt. 05/18/2018)