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Refund due to change in GST Rate Tobacco Products
WE ARE TOBACCO PRODUCT RETAILER. WE HAVE PAID GST TAX (GST+CESS) 1% AS PER RULE 86(B) NOW GOVERNMENT HAS CHANGED GST TAX. AND ABOLISHED CESS. WE HAVE EXCESS TAX CREDIT ON GST PORTAL. CAN WE CLAIM REFUND ON 1% GST+CESS PAID ON PREVIOUS PERIOD RETURN DUE TO CHANGE IN GST RATE ? OUR CASH PAYMENT CONVETRED IN TO CREDIT.
Replies (2)
Quick Summary
No, you generally cannot claim a direct cash refund of the 1% GST/Cess paid under Rule 86B simply because the tax rates changed or cess was abolished. However, that "excess credit" sitting in your portal isn't necessarily lost.
Compensation Cess credit:
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Can be used only against Compensation Cess liability
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If cess is abolished, unused credit generally lapses
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Refund is NOT allowed unless Government issues special notification.
If the 1% amount is lying in your Electronic Cash Ledger as unused balance, then you can claim refund of that unused cash balance. But if it was already utilized against tax liability, refund is NOT allowed.
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