Refund of gst
This query is : Resolved
15 October 2018
Can we Claim GST refund in the following case.?
We are owning Solar power plants to sell the power to captive consumers.
For construction of Solar power plant we are paying GST on capital goods as input tax.
Can we claim this as refund in normal case? Or
Can we claim the refund, if the customer is in a Special Economic Zone(SEZ)? (Power plant is outside SEZ).
Thank You
We are owning Solar power plants to sell the power to captive consumers.
For construction of Solar power plant we are paying GST on capital goods as input tax.
Can we claim this as refund in normal case? Or
Can we claim the refund, if the customer is in a Special Economic Zone(SEZ)? (Power plant is outside SEZ).
Thank You
15 October 2018
Power supply is exempt from GST so no input tax/GST refund can be claimed. No GST refund on power supply to sez.
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24 October 2018
Dear Sir,
As per Sec.16 of IGST act,
16. Zero rated supply.
(1) “zero rated supply” means any of the following supplies of goods or services or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
From the above Clause no.16(2), it is clear that even though the supply may be a exempted supply under the GST, credit of input tax may be availed for making zero-rated supplies.
According to above clause Can we claim GST refund??
Thank You
As per Sec.16 of IGST act,
16. Zero rated supply.
(1) “zero rated supply” means any of the following supplies of goods or services or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
From the above Clause no.16(2), it is clear that even though the supply may be a exempted supply under the GST, credit of input tax may be availed for making zero-rated supplies.
According to above clause Can we claim GST refund??
Thank You
24 October 2018
No, it's a non GST supply refund can't be claimed.
Non GST Supply
Goods or services on which GST is not leviable are called Non GST supply. Input tax credit of inputs and / or input services used in providing non GST supply is not available i.e. no input tax credit on non GST supplies.
Examples of Non-GST supplies are alcohol for human consumption, petroleum products, electricity etc.
Non GST Supply
Goods or services on which GST is not leviable are called Non GST supply. Input tax credit of inputs and / or input services used in providing non GST supply is not available i.e. no input tax credit on non GST supplies.
Examples of Non-GST supplies are alcohol for human consumption, petroleum products, electricity etc.
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26 October 2018
Dear Sir,
Thanks for the reply
As per Sec.16(2) of IGST act,
Credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an "exempt supply".
As per Sec.2 (47) of CGST Act,
“Exempt Supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes "non-taxable supply";
The non-taxable supply means not leviable to tax under this Act which is Electricity also.
From this provision it is clear that we can claim refund of GST for zero-rated supply.
Please Clarify.
Thank You
Thanks for the reply
As per Sec.16(2) of IGST act,
Credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an "exempt supply".
As per Sec.2 (47) of CGST Act,
“Exempt Supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes "non-taxable supply";
The non-taxable supply means not leviable to tax under this Act which is Electricity also.
From this provision it is clear that we can claim refund of GST for zero-rated supply.
Please Clarify.
Thank You
26 October 2018
It's non GST supply get advance ruling as opinion differs for safer side.
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