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Itc refund claim by sez

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PEP CONSULTANCY

83 Points Posted on 08 May 2020

Can entity registered in SEZ apply for ITC refund on tax paid on inward supplies?

Replies (2)

Quick Summary

Entities registered in a Special Economic Zone (SEZ) can generally claim a refund for Input Tax Credit (ITC) paid on inward supplies, as clarified by Notification 56/2019. However, a crucial restriction applies: if the supplier in the Domestic Tariff Area (DTA) has already claimed a refund for the same tax, the SEZ cannot claim it. Additionally, SEZs are exempt from paying IGST charged by DTA suppliers under Notification 15/2017-Integrated Tax (Rate).

Rajendra Prabhu

Associate

54 Points Posted on 08 May 2020

Dear Pep Consultancy,

Yes . They can claim refund, notification 56/2019 clarifies , refer Statement 4A.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 09 May 2020

No .... if supplier (DTA) is claiming refund for the same then Sez cannot claim Refund (refer 3rd Provisio under Section 54(3) of CGST Act) .
So if Supplier files refund application RFD01 with Statement 4 in term of Notification 56/2019 CT (R) , then Sez cannot file refund for the same under statement 4a.

Moreover In term Notification 15/2017- Integrated Tax (Rate)
Sez are Exempted to pay IGST charged by Supplier (DTA) on Bill