CAN A TRADER OF COAL CLAIM REFUND OF GST CESS
This query is : Resolved
17 August 2020
CESS ON COAL UNDER GST CAN BE REFUNDED TO A TRADER
A Coal Trader Has Purchased Coal And Paid Cess @400 Per M.Tonne Now Subsequently The Coal Trader Has Sold Coal To SEZ Unit Where He Has To Charge NIL GST/Cess [WITH LUT].
As A Result Of Sale To SEZ Now There Is Excess IGST Input And Cess Is Lying In His Credit Ledger.
The Trader Wants To Adjust IGST For Subsequent Sale But He Wants Cess To Be Refunded Because The Cess Now Can Not Be Utilised For Subsequent Sale As There Is Always Cess On Purchase Of Coal At Fixed Rate As Input And On Sale Cess Will Be Output At Fixed Rate.
Hence, The Cess Of SEZ Sale Will Always Remain In His Credit Ledger,So He Wants The Refund OF CESS ONLY.
Now The Question Is Whether [1]. A TRADER Of Coal Can File Application For Refund Of Cess Or It Is Allowed Only To Manufacturer.
2. Trader Of Coal Is Eligible For Refund Or Not. He Is Not Manufacturing Any Goods. Only Purchases COAL And Sales COAL.
Pl. Clarify.
REGARDS,
CA. DILIP DOSHI
A Coal Trader Has Purchased Coal And Paid Cess @400 Per M.Tonne Now Subsequently The Coal Trader Has Sold Coal To SEZ Unit Where He Has To Charge NIL GST/Cess [WITH LUT].
As A Result Of Sale To SEZ Now There Is Excess IGST Input And Cess Is Lying In His Credit Ledger.
The Trader Wants To Adjust IGST For Subsequent Sale But He Wants Cess To Be Refunded Because The Cess Now Can Not Be Utilised For Subsequent Sale As There Is Always Cess On Purchase Of Coal At Fixed Rate As Input And On Sale Cess Will Be Output At Fixed Rate.
Hence, The Cess Of SEZ Sale Will Always Remain In His Credit Ledger,So He Wants The Refund OF CESS ONLY.
Now The Question Is Whether [1]. A TRADER Of Coal Can File Application For Refund Of Cess Or It Is Allowed Only To Manufacturer.
2. Trader Of Coal Is Eligible For Refund Or Not. He Is Not Manufacturing Any Goods. Only Purchases COAL And Sales COAL.
Pl. Clarify.
REGARDS,
CA. DILIP DOSHI
Lekhraj sood
(Expert)
18 August 2020
Yes, you can definitely claim refund of accumulated Cess.
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