Refund of tax, Sec 54 of CGST Act, 2017

 

 

Section 54 of CGST Act, 2017 Refund of tax

 

Click here to know GST rate of your goods or service

 

The below post explains about Refund of tax under section 54 of CGST Act,2017.

Section 54 of CGST Act, 2017 explains Refund of tax as below: (The amendments if any will also be updated here soon).

The extract of Section 54 of CGST Act,2017 quoted below:

54  Refund of tax.

54. (1) Any person claiming refund of any tax and interest, if any, paid on such tax or

any other amount paid by him, may make an application before the expiry of two years from

the relevant date in such form and manner as may be prescribed:

Refund of tax, Sec 54 of CGST Act, 2017Provided that a registered person, claiming refund of any balance in the electronic

cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim

such refund in the return furnished under section 39 in such manner as may be prescribed.

(2) A specialised agency of the United Nations Organisation or any Multilateral Financial

Institution and Organisation notified under the United Nations (Privileges and Immunities)

Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons,

as notified under section 55, entitled to a refund of tax paid by it on inward supplies of goods

or services or both, may make an application for such refund, in such form and manner as

may be prescribed, before the expiry of six months from the last day of the quarter in which

such supply was received.


(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:

Provided further that no refund of unutilised input tax credit shall be allowed in

cases where the goods exported out of India are subjected to export duty:

Provided also that no refund of input tax credit shall be allowed, if the supplier of

goods or services or both avails of drawback in respect of central tax or claims refund

of the integrated tax paid on such supplies.

(4) The application shall be accompanied by—

(a) such documentary evidence as may be prescribed to establish that a refund

is due to the applicant; and

(b) such documentary or other evidence (including the documents referred to in

section 33) as the applicant may furnish to establish that the amount of tax and interest,

if any, paid on such tax or any other amount paid in relation to which such refund is

claimed was collected from, or paid by, him and the incidence of such tax and interest

had not been passed on to any other person:
Provided that where the amount claimed as refund is less than two lakh rupees,

it shall not be necessary for the applicant to furnish any documentary and other

evidences but he may file a declaration, based on the documentary or other evidences

available with him, certifying that the incidence of such tax and interest had not been

passed on to any other person.

(5) If, on receipt of any such application, the proper officer is satisfied that the whole

or part of the amount claimed as refund is refundable, he may make an order accordingly and

the amount so determined shall be credited to the Fund referred to in section 57.

(6) Notwithstanding anything contained in sub-section (5), the proper officer may,

in the case of any claim for refund on account of zero-rated supply of goods or services or

both made by registered persons, other than such category of registered persons as may

be notified by the Government on the recommendations of the Council, refund on a

provisional basis, ninety per cent. of the total amount so claimed, excluding the amount of

input tax credit provisionally accepted, in such manner and subject to such conditions,

limitations and safeguards as may be prescribed and thereafter make an order under subsection

(5) for final settlement of the refund claim after due verification of documents

furnished by the applicant.

(7) The proper officer shall issue the order under sub-section (5) within sixty days from

the date of receipt of application complete in all respects.

(8) Notwithstanding anything contained in sub-section (5), the refundable amount

shall, instead of being credited to the Fund, be paid to the applicant, if such amount is

relatable to—

(a) refund of tax paid on zero-rated supplies of goods or services or both or on

inputs or input services used in making such zero-rated supplies;

(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially,

and for which invoice has not been issued, or where a refund voucher has been issued;

(d) refund of tax in pursuance of section 77;

(e) the tax and interest, if any, or any other amount paid by the applicant, if he

had not passed on the incidence of such tax and interest to any other person; or

(f) the tax or interest borne by such other class of applicants as the Government

may, on the recommendations of the Council, by notification, specify.

(9) Notwithstanding anything to the contrary contained in any judgment, decree,

order or direction of the Appellate Tribunal or any court or in any other provisions of this Act

or the rules made thereunder or in any other law for the time being in force, no refund shall be

made except in accordance with the provisions of sub-section (8).

(10) Where any refund is due under sub-section (3) to a registered person who has

defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which

has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the

proper officer may—

(a) withhold payment of refund due until the said person has furnished the

return or paid the tax, interest or penalty, as the case may be;

(b) deduct from the refund due, any tax, interest, penalty, fee or any other amount

which the taxable person is liable to pay but which remains unpaid under this Act or

under the existing law.

Explanation.––For the purposes of this sub-section, the expression “specified date”

shall mean the last date for filing an appeal under this Act.
(11) Where an order giving rise to a refund is the subject matter of an appeal or further

proceedings or where any other proceedings under this Act is pending and the Commissioner

is of the opinion 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 determine.

(12) Where a refund is withheld under sub-section (11), the taxable person shall,

notwithstanding anything contained in section 56, be entitled to interest at such rate not

exceeding six per cent. as may be notified on the recommendations of the Council, if as a

result of the appeal or further proceedings he becomes entitled to refund.

(13) Notwithstanding anything to the contrary contained in this section, the amount

of advance tax deposited by a casual taxable person or a non-resident taxable person under

sub-section (2) of section 27, shall not be refunded unless such person has, in respect of the

entire period for which the certificate of registration granted to him had remained in force,

furnished all the returns required under section 39.

(14) Notwithstanding anything contained in this section, no refund under sub-section (5)

or sub-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees.

Explanation.—For the purposes of this section,––

(1) “refund” includes refund of tax paid on zero-rated supplies of goods or

services or both or on inputs or input services used in making such zero-rated supplies,

or refund of tax on the supply of goods regarded as deemed exports, or refund of

unutilised input tax credit as provided under sub-section (3).
(2) “relevant date” means—

(a) in the case of goods exported out of India where a refund of tax paid is

available in respect of goods themselves or, as the case may be, the inputs or

input services used in such goods,––
(i) if the goods are exported by sea or air, the date on which the ship

or the aircraft in which such goods are loaded, leaves India; or

(ii) if the goods are exported by land, the date on which such goods

pass the frontier; or

(iii) if the goods are exported by post, the date of despatch of goods

by the Post Office concerned to a place outside India;

(b) in the case of supply of goods regarded as deemed exports where a

refund of tax paid is available in respect of the goods, the date on which the

return relating to such deemed exports is furnished;

(c) in the case of services exported out of India where a refund of tax paid

is available in respect of services themselves or, as the case may be, the inputs

or input services used in such services, the date of––

(i) receipt of payment in convertible foreign exchange, where the

supply of services had been completed prior to the receipt of such payment;

or

(ii) issue of invoice, where payment for the services had been received

in advance prior to the date of issue of the invoice;

(d) in case where the tax becomes refundable as a consequence of judgment,

decree, order or direction of the Appellate Authority, Appellate Tribunal or any

court, the date of communication of such judgment, decree, order or direction;
(e) in the case of refund of unutilised input tax credit under

sub-section (3), the end of the financial year in which such claim for refund

arises;

(f) in the case where tax is paid provisionally under this Act or the rules

made thereunder, the date of adjustment of tax after the final assessment thereof;

(g) in the case of a person, other than the supplier, the date of receipt of

goods or services or both by such person; and

(h) in any other case, the date of payment of tax.

The above information clarifies about Refund of tax under section 54 of CGST Act,2017.  

If you have any comments about Section 54 of CGST Act, 2017 explaining Refund of tax, share below your thoughts:

 

 Click here to know GST rate of your goods or service

 

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

Indian GST Laws

How to export your goods?

How to get Export Order?

GST Registration Guidelines

Learn Imports and Exports business free of cost

Find HSN code of your product.

How to export goods from India?

Functions of GSTN under mode of payment of GST

Procedures of GST payment through Internet Banking

GST payment through Internet Banking

How does e-payment of GST work?

Modes of GST payment

How to fill GST tax challan online?

 

Liability of officers and certain other persons, CGST Act, 2017 

Presumption of culpable mental state, CGST Act, 2017 

CGST Act, 2017 Migration of existing taxpayers 

Job work procedure, CGST Act 

Admissibility of micro films, facsimile copies of documents 

CGST Act, 2017 Common Portal

Goods and services tax compliance rating, CGST Act, 2017 

Power to collect statistics, CGST Act 

 

GST rate for wool, animal hair, yarn of horsehair, woven fabric 

GST Tariff rate for Cotton and Cotton articles 

Rate of GST for woven fabrics of paper, Paper Yarn, other vegetable textile fibers etc. 

Percentage of GST imposed for manmade textile materials, filaments, strips 

GST for manmade staple fibres in India 

GST rate for ropes, twine, wadding, special yarns, felt etc. 

GST for Carpet industries and sale of textile floor coverings 

What is ECGC and how does ECGC protect exporters?

 What is EPCG How EPCG works in Export Import trade?

 What is Ex-factory terms in Imports and Exports        

Transferability of Bill of Lading

Transhipment - A redefinition                                                    

Travelers to India under import duty exemption, Frequently Asked Questions Part 2 

Triangular export

Triangular shipment




Comments


Ramesh Upadhya: Hi, If I import spare parts free of cost for replacement at MNCs customer in India for warranty, by paying BCD, IGST and also taking taking IGST Credit to adjust towards billing on to the customers in India should I 1. Collect defective from Customer RCM basis with nominal value of 5-10 % of the original price. 2. Claim refund of Duty/IGST paid while importing good parts, at the time of return export of replacement defective part FOC to the MNC supplier or his designated Repair Vendor abroad.. P.S Can I also raise Zero consideration Tax invoice by not collecting any payments for cost or GST from customer , but adjust the Tax payable against IGST credit availed ? Ramesh Upadhya

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers