20 December 2018
We are private limited company in dairy business. We had purchased machine for milk packing from china. For the same machine we had paid Rs. 2.59 lakh as IGST on import. Our product is milk only which is not subjected to GST while selling. Can we claim the refund on the IGST paid?
20 December 2018
In terms of Section 54(3) of CGST Act, refund of unutilised ITC can be claimed only in 2 cases, as follows:
(i) zero rated supplies made without payment of tax; (ii) 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), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council
As your case does not fall in any of the above, you are not qualified for refund.
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