1. What is a refund?

As mentioned in section fifty-four of the CGST/SGST Act, a “refund” includes:

• any balance amount within the electronic money ledger thus claimed within the returns

• tax paid by specialised agencies of the United Nations or any multipartite financial organization and organization notified underneath the international organisation (Privileges and Immunities) Act, 1947, diplomatic building or embassy of foreign countries on any inward supply; and

• any unutilized input tax credit (ITC) in respect of:

o zero-rated supplies created without payment of tax

o an accumulation of credit due to a higher rate of tax on inputs than on the output provides (other than nada rated or exempt supplies)

2. will AN unutilized ITC run as a refund once merchandise exported outside India are subjected to export duty?

A refund of any unutilized input tax credit isn’t granted in cases wherever the products exported out of India are subject to duty – as per the second precondition to section fifty-four (3) of the CGST/SGST Act.

3. can AN unutilized ITC be refunded at the shut of the business enterprise year?

There is no such provision within the GST law that might enable a refund of unutilized ITC after the year. It shall be carried forward to the subsequent year.

4. what’s the closing date for claiming a refund?

A person claiming a refund is needed to file AN application inside 2 years from the “relevant date” as given within the clarification to section fifty-four of the CGST/SGST Act.

5. can the principle of unjust enrichment be applicable within the case of a refund?

The principle of unjust enrichment is applicable all told cases of refunds except within the following circumstances:

• when a refund of tax has been paid on zero-rated supplies of products or services or each, or on inputs or input services utilized in creating such zero-rated supplies;

• in cases of any unutilized input tax credit in respect of:

o zero-rated supplies allotted while not payment of tax, or

o an accumulation of credit thanks to a better rate of tax on inputs than the rate of tax on output supplies

• when a provider has not been provided, either entirely or partially, or AN invoice has not been discharged

• in pursuance of Section 77 of the CGST/SGST Act, once a tax has been lawfully collected and paid to the Central Government or state government

6. will refund be withheld by the department?

Yes, a refund is withheld within the following circumstances:

• if the person has didn’t furnish any come back till he files such comeback

• if a registered, taxable person owes any tax, interest, or penalty that has not been stayed by AN proceedings authority/tribunal/ court, till he pays such tax, interest or penalty; the right officer also can deduct unpaid taxes, interest, penalty, late fee, if any, from the refundable amount [Section 54(10) (d) of the CGST/SGST Act]

• If the order of refund is underneath charm and a commissioner believes that the grant of such a refund can adversely have an effect on revenue within the aforesaid charm on account of misconduct or fraud [Sec. fifty-four (11) of the CGST/SGST Act]

7. Is there any minimum threshold for a refund?

• No refund shall be granted if the number is a smaller amount than Rs.1000. [Sec.54 (14) of the CGST/SGST Act].

8. what’s the period inside that the department should acknowledge a refund claim?

Where AN application relates to a claim for a refund from the electronic money ledger as per section 49 (6) of the CGST/SGST Act and is created through a come back that’s stocked with for the relevant tax amount, the department can communicate AN acknowledgement as shortly because the come back is stocked with. all told different cases, the acknowledgement is delivered to the soul inside 15 days from the date of receipt of a whole application.

Demands and recovery

9. If a show-cause notice is gone forth underneath Section 73, and then the notice makes the payment at the side of the applicable interest, is there a need to adjudicate the case?

If the individual pays the tax at the side of interest inside 30 days of issue of notice, no penalty shall be collectable, and every one transaction in respect of such notification shall be closed.

10. If a notice makes payment once a notice is issued underneath Section 74, is there a need to adjudicate the case?

Where the person to whom a notice has been issued underneath sub-section (1) of section 74 pays the tax at the side of interest — a penalty up to twenty-fifth of such tax — inside thirty days of issue of notice, all proceedings in respect of such notice shall be deemed to be finished.

11. By what modalities could the right officer retrieve taxes?

The proper officer could recover the dues in the following ways:

• By deducting dues from the amount owed by the tax authorities collectable to such person;

• By detaining and merchandising any merchandise happiness to such individual;

• Recovery from the opposite person from whom cash is due or could become due, to such person or who holds or could afterwards hold, cash for or on account of such person, to pay to the credit of the Central or a State Government;

• By seizing any movable or stabile property belonging to such individual till the total collectable is paid. If the dues don’t seem to be paid inside 30 days, the aforesaid property is to be sold, and with the yield of such sale the number collectable and value of sale shall be recovered;

• Through the collector of the district during which such person owns ANy property or resides or carries on his business as if it was an arrear of land revenue;

CGST arrears can be retrieved as an arrear of SGST and vice-versa;

12. Can payment of tax dues be made in installments?

On receipt of any such request, the Commissioner/Chief Commissioner may extend the time for payment or allow the payment of any amount due under the Act by such person in monthly instalments not exceeding 24, subject to payment of interest under section 50 and with such limitations and conditions as may be prescribed.

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