REFUND OF COMPENSATION CESS IN INVERTED DUTY STRUCTURE
Query (Issue) Started By: – Vinay Jhawar Dated:- 9-9-2018 Last Reply Date:- 17-9-2018 Goods and Services Tax – GST
Got 9 Replies
GST
Can one claim refund of unutilised input tax credit of compensation cess paid on coal purchase, in application for inverted duty structure along with CGST and SGST refund.
\nReply By DR.MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nIn my view it can be claimed. Views of experts are solicited.
\nReply By Yash Jain:
\nThe Reply:
\nSir,
\nIt's a typical issue, but prima facie following is the status on refund on compensation cess,
\n1. If your products are sold by way of charging tax, then irrespective of rate charged on final products (whether or not final product is subject to cess in addition to Cgst\/sgst or igst) , then compensation cess is "not Refundable", as input of cess can be utilized " Only" against payment of output cess.
\n2. For exports – If goods are exported by way of c<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n some clarity, on refund of cess, and compensation cess being levied to compensate states (hence not Refundable), but we can approach advance ruling authority to determine whether (by chance, if any) we can get refund. It will cost only R's. 10000\/-, but will provide, a definite clarity. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , If CESS can be input tax credit for zero rated supply then why not for Inverted Structure. Ultimately refund is allowed of unutilised input tax credit and the NET ITC defnination is simmilar for bith inverted and zero rated supply refund (only service not allowed in inverted structure) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" REFUND OF COMPENSATION CESS IN INVERTED DUTY STRUCTURE Query (Issue) Started By: – Vinay Jhawar Dated:- 9-9-2018 Last Reply Date:- 17-9-2018 Goods and Services Tax – GSTGot 9 RepliesGSTCan one claim refund of unutilised input tax credit of compensation cess paid on coal purchase, in application for inverted duty structure along with CGST and SGST … Continue reading “REFUND OF COMPENSATION CESS IN INVERTED DUTY STRUCTURE”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13601","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13601"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13601\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nRgds
\nReply By DR.MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nYou are correct.
\nReply By Gorantla Bhaskar Rao:
\nThe Reply:
\nDear querist,
\nI agree with the experts. As of now the provisions are clear that only input cess can be utilised for payment of output cess. Hence, refund is not possible.
\nReply By Yash Jain:
\nThe Reply:
\nDear Sir,
\nThe Provision with regard to refund for compensation cess is very much clear that " Refund for Compensation cess on coal can be availed" if and only if the Goods as being manufactured from Coal are being exported under "Zero rate exports under Bond\/LUT".
\nIn rest all the cases (Even for Exempt Supply) Refund for compensation cess will not be available.<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nReply By Yash Jain:
\nThe Reply:
\nSir,
\nFor Advance Ruling – Well Yes we can go for advance ruling, but If the Circular Allows one to take refund for Cess then why to go for such ruling. It will come after 90 days and that too chances of it being dismissed is high as we already have circular\/clarification. Advance ruling cannot override the GST Law.
\nCess for Inverted duty structure : We pay ₹ 400\/- PMT as cess on coal. Say the Coal is Trading at ₹ 8500 to 9000 (PMT) (This being indigenous procured coal) (Say 400\/ 8500 = 5% Say) and ₹ 11500\/- (400\/11500 = 3% Say). Your final product must be taxable at more than 5%, so it will be impossible to prove that accumulation is on account of in<\/p>\n
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