{"id":19951,"date":"2023-04-03T17:47:37","date_gmt":"2023-04-03T12:17:37","guid":{"rendered":"https:\/\/gstguntur.com\/?p=19951"},"modified":"2023-05-10T16:58:37","modified_gmt":"2023-05-10T11:28:37","slug":"refunds-ca-final-idt-study-material","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/refunds-ca-final-idt-study-material\/","title":{"rendered":"Refunds \u2013 CA Final IDT Study Material"},"content":{"rendered":"

Refunds \u2013 CA Final IDT Study Material<\/a> is designed strictly as per the latest syllabus and exam pattern.<\/p>\n

Refunds \u2013 CA Final IDT Study Material<\/h2>\n

Question 1.
\nState five cases where refunded amount shall be paid to the applicant, instead of being credited to consumer welfare fund under CGST Act, 2017. [May 2018, 5 Marks]
\nAnswer:
\nIn the following cases, instead of being credited to the Consumer Welfare Fund, the refundable amount shall be paid to the applicant (exception of unjust enrichment):
\n(a) Refund of Tax paid on export of Goods & services or both or on input Services used in making such exports. (Supply to SEZ will not be covered here)
\n(b) Refund of unutilized ITC in case of zero rated supplies or accumulated ITC on account of inverted duty structure.
\n(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.
\n(d) Refund of Tax is pursuance of section 77 (i.e. Tax wrongly collected & paid to department).
\n(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
\n(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.<\/p>\n

Question 2.
\nWye Ltd. provides the following details of September 2020 for computation of refund claim under rule 89(4) of the CGST Rules, 2017. Compute the eligible claim under the said rule assuming that other conditions are fulfilled.<\/p>\n\n\n\n\n\n\n\n
Particulars<\/td>\nAmount (\u20b9)<\/td>\n<\/tr>\n
Opening balance of ITC<\/td>\n5,00,000<\/td>\n<\/tr>\n
ITC availed during the period, which includes the claim for refund made of \u20b9 5,00,000 eligible under rule 89(4A)\/89(4B)of the CGST Rules, 2007<\/td>\n25,00,000<\/td>\n<\/tr>\n
Zero rated supply of goods made during the period without payment of tax under bond\/ LUT, which include the supply of \u20b9 1,00,00,000 for which refund claim is made under rule 89(4A)\/89(4B) of the CGST Rules, 2017<\/td>\n6,00,00,000<\/td>\n<\/tr>\n
Supply of goods other than zero rated supply<\/td>\n3,00,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\nRule 89(4) of CGST Rule, 2017 stipulates that in the case of zero-rated supply of goods or services or both without payment of tax under bond\/LUT in accordance with the provisions of section 16(3) of the IGST Act, 2017, refund of ITC shall be granted as per the following formula:
\n\"Refunds
\nAccordingly,<\/p>\n\n\n\n\n\n\n
Turnover of zero rated supply of goods<\/td>\n=<\/td>\n\u20b9 5,00,00,000 [\u20b9 6,00,00,000 – \u20b9 1,00,00,000]<\/td>\n<\/tr>\n
Net ITC<\/td>\n=<\/td>\n\u20b9 20,00,000 [\u20b9 25,00,000 – \u20b9 5,00,000]<\/td>\n<\/tr>\n
Adjusted Total Turnover<\/td>\n=<\/td>\n\u20b9 8,00,00,000 [\u20b9 6,00,00,000 + \u20b9 3,00,00,000 – \u20b9 1,00,00,000]<\/td>\n<\/tr>\n
maximum refund amount under rule 89(4)<\/td>\n=<\/td>\n\u20b9 20,00,000 \u00d7\u00a0\u20b9 5,00,00,000\/\u20b9 8,00,00,000 = \u20b9 12,50,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Note: Adjusted turnover excludes the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.<\/p>\n

\"Refunds<\/p>\n

Question 3.
\nThe following particulars are furnished by Delight Exporters, Karnataka, which is duly registered under the GST Act. The entity has also filed bond \/ LUT in order to export goods without payment of any taxes. You are required to calculate the refund amount in respect of input tax credit on inputs and Input services relating to goods exported in the relevant tax period.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Particulars of Supply<\/td>\nValue of Supply in \u20b9<\/td>\n<\/tr>\n
1. Turnover-excluding supply of services, but includes exempt supplies of \u20b9 8,00,000 and inward supplies of \u20b9 2,00,000<\/td>\n76,00,000<\/td>\n<\/tr>\n
2. Zero-rated supply of goods under bond\/LUT<\/td>\n12,00,000<\/td>\n<\/tr>\n
3. Export services under bond\/LUT<\/td>\n48,00,000<\/td>\n<\/tr>\n
4. Non zero-rated supply of services<\/td>\n10,00,000<\/td>\n<\/tr>\n
5. Payments received towards zero-rated supply, which includes \u20b9 12,00,000 against which services are yet to be supplied.<\/td>\n48,00,000<\/td>\n<\/tr>\n
6. Advance received in the past, against which zero-rated supplies have been made in the current tax period<\/td>\n14,00,000<\/td>\n<\/tr>\n
7. Turnover on which suppliers have claimed refund under rule 89(4A) and rule 89(4B)<\/td>\n<\/td>\n<\/tr>\n
– Goods<\/td>\n6,00,000<\/td>\n<\/tr>\n
– Services<\/td>\n6,00,000<\/td>\n<\/tr>\n
8. ITC on inputs and input services during the tax period including those under rule 89(4A) and rule 89(4B)<\/td>\n12,00,000<\/td>\n<\/tr>\n
9. ITC relating to rule 89(4A) and rule 89(4B)<\/td>\n2,40,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\nRule 89(4) of CGST Rule, 2017 stipulates that in the case of zero-rated supply of goods or services or both without payment of tax under bond\/LUT in accordance with the provisions of section 16(3) of the IGST Act, 2017, refund of ITC shall be granted as per the following formula:
\n\"Refunds
\nRefund Amount \\(=\\frac{9,60,000 \\text { (W.N.4) }}{1,14,00,000 \\text { (W.N.1) }}\\) \u00d7 56,00,000 (W.N. 2 & 3) = 4,71,579 (Round Off)<\/p>\n

Working Note 1. Calculation of Adjusted Turnover<\/p>\n\n\n\n\n\n\n\n\n\n\n
Particulars<\/td>\nAmount<\/td>\n<\/tr>\n
Turnover of Goods in a state\/UT (Nl)<\/td>\n74,00,000<\/td>\n<\/tr>\n
Add. Zero Rated Supply of Services (WN3)<\/td>\n50,00,000<\/td>\n<\/tr>\n
Add. Non-Zero Rated Supply of Services<\/td>\n10,00,000<\/td>\n<\/tr>\n
Less. Value of Exempted Supply (DTA Supply)<\/td>\n8,00,000<\/td>\n<\/tr>\n
Less. Turnover as per Rule 89(4A)<\/td>\n6,00,000<\/td>\n<\/tr>\n
Less. Turnover as per Rule 89(4B)<\/td>\n6,00,000<\/td>\n<\/tr>\n
Adjusted Turnover<\/td>\n1,14,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

It is important to note that the inward Supply \u20b9 2,00,000 is not a part of Turnover
\nWorking Note 2. Calculation of Turnover of Zero Rated Supply of Goods<\/p>\n\n\n\n\n\n\n
Particular<\/td>\nAmount<\/td>\n<\/tr>\n
Total Turnover of Zero Rated Supply of Goods<\/td>\n12,00,000<\/td>\n<\/tr>\n
(-) Turnover of Supplies of Goods in respect of which refund has been claimed under Rule 89(4A) 89(4B)<\/td>\n6,00,000<\/td>\n<\/tr>\n
Total Turnover of Zero Rated Supply of Goods<\/td>\n6,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Working Note 3. Calculation of Turnover of Zero Rated Supply of Service<\/p>\n\n\n\n\n\n\n\n
Particular<\/td>\nAmount<\/td>\n<\/tr>\n
Aggregate Payment Received for Zero Rated Supply of Service<\/td>\n48,00,000<\/td>\n<\/tr>\n
Less. Advance Received but Supply not Completed<\/td>\n12,00,000<\/td>\n<\/tr>\n
Add. Advance Received in preceding relevant period<\/td>\n14,00,000<\/td>\n<\/tr>\n
Turnover of Zero Rated Supply of Service<\/td>\n50,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\"Refunds<\/p>\n

Working Note 4. Calculation of Net ITC<\/p>\n\n\n\n\n\n\n
Particular<\/td>\nAmount<\/td>\n<\/tr>\n
Total ITC<\/td>\n12,00,000<\/td>\n<\/tr>\n
Less. ITC Availed for which refund is claimed under rule 89 (4A & 4B)<\/td>\n(2,40,000)<\/td>\n<\/tr>\n
Total<\/td>\n9,60,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Question 4.
\nKailash Global (P) Ltd. supplies various goods in domestic and international markets. It is engaged in both manufacturing and trading of goods. The company is registered under GST in the State of Karnataka. The company exports goods without payment of tax under letter of undertaking in accordance with the provisions of section 16(3)(a) of the IGST Act, 2017.
\nThe company has made the following supplies during a tax period:<\/p>\n\n\n\n\n\n\n\n
Particulars<\/td>\n(\u20b9)<\/td>\n<\/tr>\n
(i) Export of product \u2018A\u2019 to UK for $ 10,000. Assessable value under customs in Indian rupees.
\n[Export duty is levied on product \u2018A\u2019 at the time of exports]<\/td>\n		7,00,000<\/td>\n<\/tr>\n
(ii) Domestic supplies of taxable product \u2018B\u2019* during the period [excluding tax @ 5%]
\n[Inputs used in manufacturing of such goods are taxable @18%]
\n*not notified as a product, in respect of which refund of unutilised ITC shall not be allowed under section 54(3)(ii) of the CGSTAct,2017<\/td>\n		10,00,000<\/td>\n<\/tr>\n
(iii) Supply of goods to Export Oriented Unit [excluding tax @ 18%] [ITC has been claimed by the recipient]<\/td>\n5,00,000<\/td>\n<\/tr>\n
(iv) Export of exempt supplies of goods<\/td>\n6,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The ITC available for the above tax period is as follows:<\/p>\n\n\n\n\n\n\n
Particulars<\/td>\n(\u20b9)<\/td>\n<\/tr>\n
(i) On inputs (including \u20b9 50,000 on export of exempt supplies)<\/td>\n3,50,000<\/td>\n<\/tr>\n
(ii) On capital goods<\/td>\n1,20,000<\/td>\n<\/tr>\n
(iii) On input sendees (including \u20b9 18,000 on outdoor catering)<\/td>\n2,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Determine the maximum amount of refund admissible to Kailash Global (P) Ltd. for the given tax period. [RTP, May 2019]
\nAnswer:
\nComputation of maximum amount of refund admissible to Kailash Global (P) Ltd.<\/p>\n\n\n\n\n\n\n\n\n
Particulars<\/td>\n(\u20b9)<\/td>\n<\/tr>\n
Exports of product \u2018A\u2019 to UK [Note 1]<\/td>\nNil<\/td>\n<\/tr>\n
Domestic supplies of taxable product \u2018B\u2019 during the period [Note 2]<\/td>\n75,000<\/td>\n<\/tr>\n
Supply of goods to Export Oriented Unit [Note 3]<\/td>\nNil<\/td>\n<\/tr>\n
Export of exempt supplies [Note 4]<\/td>\n1,14,000<\/td>\n<\/tr>\n
Total refund claim admissible<\/td>\n1,89,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Working Notes:<\/p>\n\n\n\n\n\n\n\n
No.<\/td>\nCase<\/td>\nProvision<\/td>\n<\/tr>\n
1<\/td>\nExports of product<\/td>\nExport of goods is a zero rated supply in terms of section 16(1)(a) of the IGST Act, 2017. Further, Kailash Global (P) Ltd. exports goods without payment of tax under letter of undertaking in accordance with the provisions of section 16(3)(a) of the IGST Act, 2017. Therefore, as per clause (i) of first proviso to section 54(3) of the CGST Act, 2017, a registered person may claim refund, of any unutilised ITC in the case of zero rated supply at the end of any tax period. However, second proviso to section 54(3) lays down that refund of unutilized ITC is not allowed if the goods exported out of India are subjected to export duty.<\/td>\n<\/tr>\n
2<\/td>\nDomestic supplies<\/td>\nRule INVERTED TAX STRUCTURE: 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).
\nAmount of refund on account of inverted duty structure shall be determined as per rule 89(5) of the CGST Rules, 2017:\u2666 Rule 89(5) of the CGST Rules, 2017 stipulates that in the case of refund on account of inverted duty structure, refund of ITC shall be granted as per the following formula –\"RefundsTax payable on inverted rated supply of goods = \u20b9 10,00,000 \u00d7 5% = \u20b9 50,000<\/span><\/p>\n

Here, Net ITC = \u20b9 3,50,000
\nAdjusted Total Turnover
\n= \u20b9 28,00,000 [\u20b9 7,00,000 + \u20b9 10,00,000 + \u20b9 5,00,000 + \u20b9 6,00,000]
\nTurnover of inverted rated supply of goods = \u20b9 10,00,000 Thus, maximum refund amount under rule 89(5)
\n= (\u20b9 10,00,000 \u00d7 \u20b9 3,50,000)\/\u20b9 28,00,000 – \u20b9 50,000 = \u20b9 75,000<\/td>\n<\/tr>\n

3<\/td>\nSupply to EOU<\/td>\nSupplies to EOU is notified as deemed export under section 147 vide Notification No. 48\/2017 CTdated 18.10.2017. In respect of supplies regarded as deemed exports, the application of refund can be filed by the supplier of deemed export supplies only in cases where the recipient does not avail of ITC on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund. Therefore, since in the given case, the recipient is claiming ITC, Kailash Global (P) Ltd. (supplier of deemed exports) cannot claim refund of ITC.<\/td>\n<\/tr>\n
4<\/td>\nExport of exempt supplies<\/td>\nSection 16(2) of the IGST Act, 2017 stipulates that subject to the provisions of section 17(5) of the CGST Act, ITC may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. Section 54(3) of the CGST Act, 2017 allows refund of ITC in the case of zero rated supply made without payment of tax.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Rule 89(4) of CGST Rule, 2017 stipulates that in the case of zero-rated supply of goods or] services or both without payment of tax under bond\/LUT in accordance with the provisions of section 16(3) of the IGST Act, 2017, refund of ITC shall be granted as per the following formula:<\/p>\n

\"Refunds<\/p>\n

Note: Adjusted turnover excludes the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.<\/p>\n\n\n\n\n\n\n
Turnover of zero rated supply of goods<\/td>\n=<\/td>\n\u20b9 6,00,000<\/td>\n<\/tr>\n
Net ITC<\/td>\n=<\/td>\n\u20b9 5,32,000 (ITC on outdoor catering disallowed as per section 17(5))<\/td>\n<\/tr>\n
Adjusted Total Turnover<\/td>\n=<\/td>\n\u20b9 28,00,000 (as computed in point 2 above)<\/td>\n<\/tr>\n
maximum refund amount under rule 89(4)<\/td>\n=<\/td>\n\u20b9 6,00,000 \u00d7\u00a0\u20b9 5,32,000\/\u20b9 28,00,000 = \u20b9 1,14,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\"Refunds<\/p>\n

Question 5.
\nSuper Engineering Works, a registered supplier In Haryana, is engaged in supply of taxable goods within the State. Given below are the details of the turnover and applicable GST rates of the final products manufactured by Super Engineering Works as also the input tax credit (ITC) availed on inputs used in manufacture of each of the final products and GST rates applicable on the same, during a tax period:<\/p>\n\n\n\n\n\n\n
Products<\/td>\nTurnover* (\u20b9)<\/td>\nOutput GST Rates<\/td>\nITC availed (\u20b9)<\/td>\nInput GST Rates<\/td>\n<\/tr>\n
A<\/td>\n500,000<\/td>\n5%<\/td>\n54,000<\/td>\n18%<\/td>\n<\/tr>\n
B<\/td>\n350,000<\/td>\n5%<\/td>\n54,000<\/td>\n18%<\/td>\n<\/tr>\n
C<\/td>\n100,000<\/td>\n18%<\/td>\n10,000<\/td>\n18%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Excluding GST
\nDetermine the maximum amount of refund of the unutilized input tax credit that Super Engineering Works Is eligible to claim under section 54(3)(ii) of the CGST Act, 2017 provided that Product B is notified as a product, in respect of which no refund of unutilised input tax credit shall be allowed under said section. [RTP, Nov. 18\/MTP May 2019, 5 Marks]
\nAnswer:
\nStatutory provision:
\nINVERTED TAX STRUCTURE: 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).
\nAmount of refund on account of inverted duty structure shall be determined as per rule 89(5) of the CGST Rules, 2017:<\/p>\n

Rule 89(5) of the CGST Rules, 2017 stipulates that In the case of refund on account of inverted duty structure, refund of ITC shall be granted as per the following formula –
\n\"Refunds<\/p>\n

In the given case:
\nIn accordance with the aforesaid provisions, the maximum refund amount which Super Engineering Works is eligible to claim shall be computed as follows:<\/p>\n\n\n\n\n\n\n\n\n
Tax payable on inverted rated supply of Product A<\/td>\n=<\/td>\n\u20b9 5,00,000 \u00d7 5% = \u20b9 25,000<\/td>\n<\/tr>\n
Net ITC<\/td>\n=<\/td>\n\u20b9 1,18,000 (\u20b9 54,000 + \u20b9 54,000 + \u20b9 10,000) [Net ITC availed during the relevant period needs to be considered irrespective of whether the ITC pertains to inputs eligible for refund of inverted rated supply of goods or not]<\/td>\n<\/tr>\n
Adjusted Total Turnover<\/td>\n=<\/td>\n\u20b9 9,50,000 (\u20b9 5,00,000 + \u20b9 3,50,000 + \u20b9 1,00,000)<\/td>\n<\/tr>\n
Turnover of inverted rated supply of Product A<\/td>\n=<\/td>\n\u20b9 5,00,000<\/td>\n<\/tr>\n
Maximum refund amount<\/td>\n=<\/td>\n[(\u20b9 5,00,000 \u00d7\u00a0\u20b9 1,18,000)\/\u20b9 9,50,000] – \u20b9 25,000<\/td>\n<\/tr>\n
<\/td>\n=<\/td>\n\u20b9 37,105 (rounded off)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Question 6.
\nExplain \u201crelevant date\u201d for the purpose of refund under CGST?
\nAnswer:
\nMeaning of ‘Relevant Date’<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Case<\/td>\nRelevant Date<\/td>\n<\/tr>\n
1. In 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 and<\/td>\n<\/td>\n<\/tr>\n
(i) Goods are exported by sea or air<\/td>\nDate on which the ship or the aircraft in which such goods are loaded, leaves India<\/td>\n<\/tr>\n
(ii) Goods are exported by land<\/td>\nDate on which such goods pass the frontier<\/td>\n<\/tr>\n
(iii) Goods are exported by post<\/td>\nDate of dispatch of goods by the Post Office concerned to a place outside India<\/td>\n<\/tr>\n
2. In case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods<\/td>\nDate on which the return relating to such deemed exports is furnished<\/td>\n<\/tr>\n
3. In 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, and<\/td>\n<\/td>\n<\/tr>\n
(i) the supply of services had been completed prior to the receipt of such payment<\/td>\nDate of receipt of payment in convertible foreign exchange in Indian rupees wherever permitted by the Reverse Bank of India<\/td>\n<\/tr>\n
(ii) payment for the services had been received in advance prior to the date of issue of the invoice<\/td>\nDate of issue of Invoice<\/td>\n<\/tr>\n
4. Where tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court<\/td>\nDate of communication of such judgment, decree, order or direction<\/td>\n<\/tr>\n
5a. In case of refund of unutilised ITC in case of zero rated supplies<\/td>\nEnd of the Financial Year in which such claim for refund arises<\/td>\n<\/tr>\n
5b. In case of refund of unutilised ITC in case of accumulated ITC on account of inverted duty structure<\/td>\nDue Date for furnishing of return under section 39 for the period in which such claim for refund arises This amendment has been made to correct an inherent contradiction of the relevant date in case of refund of unutilized ITC under section 54(3) since as per Explanation (2)(e) to section 54, the relevant date means the end of the financial year in which such claim for refund arises while section 54(3) states that a registered person may claim refund of any unutilized ITC at the end of any tax period.<\/td>\n<\/tr>\n
6. In the case where tax is paid provisionally under this Act or the rules made thereunder<\/td>\nDate of adjustment of tax after the final assessment thereof<\/td>\n<\/tr>\n
7. In the case of a person, other than the supplier<\/td>\nDate of receipt of goods or services or both by such person<\/td>\n<\/tr>\n
8. Any other case<\/td>\nDate of payment of tax<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\"Refunds<\/p>\n

Question 7.
\nShort note on Provisional Refund?
\nAnswer:
\nGrant of Provisional Refund [Section 54(6) read with Rule 91]
\nThe 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)<\/p>\n

    \n
  • refund on a provisional basis, 90% of the total amount so claimed, excluding the amount of ITC provisionally accepted.<\/li>\n
  • in such manner and subject to such conditions, limitations and safeguards as may be prescribed and<\/li>\n
  • thereafter make an order u\/s 56(5) for final settlement of the refund claim after due verification of documents furnished by the applicant.<\/li>\n
  • conditions, limitations and safeguards –<\/li>\n<\/ul>\n

    Where the amount of tax evaded does not exceeds \u20b9 2.5 crores, the person claiming refund has, not been prosecuted during any period of 5 years immediately preceding the tax period to which the claim for refund relates.<\/p>\n

    The proper officer, after scrutiny of the claim and the evidence and on being prima facie satisfied, shall make an order in prescribed form, sanctioning the amount of refund due to the said applicant on a provisional basis within a period not exceeding 7 days from the date of the acknowledgement.<\/p>\n

    Question 8.
    \nWho is entitled to refund u\/s 55?
    \nAnswer:
    \nPower of Government:
    \nGovernment may, on the recommendations of the Council, by notification, specify:<\/p>\n

      \n
    1. any specialised agency of the United Nations Organisation; or<\/li>\n
    2. any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947; or<\/li>\n
    3. Consulate or Embassy of foreign countries; and<\/li>\n
    4. any other person or class of persons as may be specified in this behalf.<\/li>\n<\/ol>\n

      who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a refund of taxes paid on the notified inward supplies of goods or services or both received by them.<\/p>\n

      Notified persons:
      \nIn exercise of above power, following persons have been notified, subject to fulfilment of specified conditions:<\/p>\n

        \n
      1. United Nations or a specified international organization**; and<\/li>\n
      2. Foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers posted therein<\/li>\n<\/ol>\n

        ** Specified international organisation means an international organisation declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities Act) 1947, to which the provisions of the Schedule to the said Act apply. Further, in exercise of said power, Canteen Stores Department (CSD), under the Ministry of Defence, has been notified as a person who shall be entitled to claim a refund of 50% of the applicable CGST\/IGST paid by it on all inward supplies of goods received by it for the purposes of subsequent supply of such goods to the Unit Run Canteens of the CSD or to the authorized customers of the CSD.<\/p>\n

        Question 9.
        \nExplain the provisions of refund allowed to retail outlets established in the departure area of an international airport.
        \nAnswer:
        \nSupply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist, is exempted from IGST.<\/p>\n

        These retail outlets making tax free supply of indigenous goods to an outgoing international tourist [also referred as eligible passenger] are entitled to claim refund of applicable CGST+SGST\/UTGST or IGST paid on inward supply of such goods. Therefore, retail outlets will supply such indigenous goods without collecting any taxes from the eligible passenger and may apply for refund.<\/p>\n

        The refund shall be subject to the following conditions, as specified in newly inserted rule 95A of the CGST Rules:<\/p>\n

        Who is eligible for refund?<\/p>\n

        Retail outlet, registered under GST and holding a valid GSTIN, established in departure area of an international airport, beyond the immigration counters, supplying indigenous goods to an outgoing international tourist who is leaving India shall be eligible to claim refund of tax paid by it on inward supply of such goods.<\/p>\n

        Application for refund<\/p>\n

        In prescribed form on a monthly\/quarterly basis along with self-certified compiled information of invoices issued for the supply made during the month or the quarter, as the case may be, along with concerned purchase invoice.<\/p>\n

        Conditions for claiming refund<\/p>\n

        The refund of tax paid by the said retail outlet shall be available if –<\/p>\n

          \n
        • the inward supplies of goods were received by the said retail outlet from a registered person against a tax invoice<\/li>\n
        • the said goods were supplied by the said retail outlet to an outgoing international tourist against foreign exchange without charging any tax;<\/li>\n
        • name and GSTIN of the retail outlet is mentioned in the tax in voice for the inward supply; and<\/li>\n
        • such other restrictions or conditions, as may be specified, are satisfied.<\/li>\n<\/ul>\n

          \"Refunds<\/p>\n

          Question 10.
          \nY Ltd. exported service valued at US $ 1,00,000. Supply of service was completed on 15th November 2019. Payment for this service was received on 30th December 2019. Refund claim was filed by Y Ltd. in respect of tax paid on inputs and inputs services for 6,00,000 on 31st January, 2020. The refund claim was sanctioned on 30th April, 2020. What is the amount of refund Y Ltd. will get in accordance with law? What is the relevant date and rate of interest as per GST law? [Nov. 2018, Old, 4 Marks]
          \nAnswer:<\/p>\n\n\n\n\n\n
          As per clause (i) of first proviso to section 54(3) of the CGST Act, 2017.<\/td>\nThe refund claim admissible to Y Ltd. on account of export of services being a zero-rated supply, is the unutilized ITC of \u20b9 6,00,000.<\/td>\n<\/tr>\n
          As per Explanation to section 54 of the CGST Act, 2017, where the supply of services had been completed prior to the receipt of payment, relevant date is the date of receipt of payment in convertible foreign exchange.<\/td>\n30th December, 2019.<\/td>\n<\/tr>\n
          As per section 56 of the CGST Act, 2017:-
          \nWhere any tax ordered to be refunded to any applicant is not refunded within 60 days from the date of receipt of application, interest shall be payable @6% p.a. from the date immediately after the expiry of 60 days from the date of receipt of application till the date of refund of such tax.<\/td>\n          		Since in the given case, tax ordered to be refunded is not refunded within 60 days from the date of receipt of application, viz., 31st January, 2020, interest @ 6% p.a. is payable.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          Question 11.
          \nDiscuss three supplies which have been notified as deemed exports under section 147 of CGST Act, 2017. [Nov. 2018 Old, 3 Marks]
          \nAnswer:
          \nThe following supplies have been notified as deemed exports under section 147 of the CGST Act, 2017:<\/p>\n

            \n
          1. Supply of goods by a registered person against Advance Authorisation.<\/li>\n
          2. Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation.<\/li>\n
          3. Supply of goods by a registered person to Export Oriented Unit.<\/li>\n
          4. Supply of gold by a notified bank\/Public Sector Undertaking against Advance Authorisation. Note: Any three points may be mentioned.<\/li>\n<\/ol>\n

            Question 12.
            \nDefine Export of Goods and Export of Services?
            \nAnswer:
            \nSolution.
            \n(I) Export of Goods<\/p>\n

            Physical Exports
            \nExport of goods requires taking the goods from India to a place outside India. India is defined as extending to the limits of its maritime zone, which is 200 nautical miles from the coastal baseline. This is far beyond the normal definition of India, which only includes its territorial waters, which in turn extend 12 miles from the baseline. Given the extended meaning of India, export would require that the goods must travel beyond 200 miles from the baseline in order to qualify as having been exported.<\/p>\n

            It may be noted that unlike in case of export of services, in case of export of goods there is no condition of receiving the payment in convertible foreign exchange<\/p>\n

            Deemed Exports<\/p>\n

            Deemed exports refers to supplies of goods manufactured in India (and not services) which are notified as deemed exports under section 147 of the CGST Act. Such supplies do not leave India and the payment for the same is received either in Indian rupees or in convertible foreign exchange.<\/p>\n

            Following categories of supply of goods have been notified as deemed exports by the Government videNotihcation No.48\/2017 CT dated 18.10.2017:
            \n(a) Supply of goods by a registered person against Advance Authorisation.
            \n(b) Supply of capital goods b a registered person against Export Promotion Capital Goods Authorisat ion.
            \n(c) Supply of goods by a registered person to Export Oriented Unit.
            \n(d) Supply of gold b a bank or Public sector Undertaking specified in Notification No. 50\/2017 Cus. dated 30.06.2017 (as amended)against Advance Authorisation.<\/p>\n

            (II) Export of Services<\/p>\n

            Supply of service qualifies to be an ‘export of service’ if it fulfils the following conditions:
            \n(a) the service is supplied from India to a place outside India,
            \n(b) the place of supply of the service is outside India, and
            \n(c) the consideration for the service is received in freely convertible foreign exchange*,
            \n(d) the transaction is between separate entities, i.e. not merely between two establishments of an entity<\/p>\n

            Important to note:<\/p>\n

            1. Branch and Head Office of one taxable person are not treated as two separate entities for this purpose. In other words, provision of outbound services inter se Branch and Head Office is not construed as export of service. However, Notification No. 9\/2017 IT(R) dated 28.06.2017 exempts the services provided by an Indian establishment to its foreign establishment from IGST if the place of supply is outside India.<\/p>\n

            2. \u2018Payment for export of service can be received in Indian rupees, if permitted by the RBI. In case of exports to Nepal and Bhutan, the payment is received in Indian rupees as per RBI regulations.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Refunds \u2013 CA Final IDT Study Material is designed strictly as per the latest syllabus and exam pattern. Refunds \u2013 CA Final IDT Study Material Question 1. State five cases where refunded amount shall be paid to the applicant, instead of being credited to consumer welfare fund under CGST Act, 2017. [May 2018, 5 Marks] …<\/p>\n

            Refunds \u2013 CA Final IDT Study Material<\/span> Read More »<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[169],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/19951"}],"collection":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/comments?post=19951"}],"version-history":[{"count":8,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/19951\/revisions"}],"predecessor-version":[{"id":24622,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/19951\/revisions\/24622"}],"wp:attachment":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media?parent=19951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/categories?post=19951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/tags?post=19951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}