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GST Refund

Cases not eligible for GST Refund : Refund is subject to restriction and in certain circumstances, refund is not available to the taxpayer in following cases:-

a. Time bound Application for GST refund.

As per Section 54(1) any application made after expiry of two year from the relevant date shall not be entertained. There is no provision of condonation of delay under the GST Laws, however the limitation act may play its role.

b. Refund Order withhold by Commissioner:

As per Section 54(11), where an order giving rise to a refund is the subject of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is think that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may decide.

c. Refund amount below Rupees One Thousand:

No refund application shall be entertained for a sum less than Rs. 1000/- [Section 54(14)];

d. Export duty payable on Export of Supply of Goods:

No refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty.

e. Duty drawback is availed on Export of Supply of goods:

No refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of GST or claims refund of the integrated tax paid on such supplies

f.  Biased enrichment:

Where the proper officer is satisfied such claimed had been passed on to any other person, then the claim amount shall not be allowed to the applicant but to transfer to the consumer welfare fund.


Sources : Abstract from Mr. Vineet Sahay’s Articles

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