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Refund of gst on machinery used for production

18 June 2018

ALCOHOLIC BEVERAGES ARE NOT INCUDED IN GST. NOW GST IS APPLICABLE ON NEW MACHINERY,SPARES ETC. USED FOR PRODUCTION PURPOSES.

HOW TO CLAIM FOR REFUND OF GST AMOUNT ON MAHCINERY?

SINCE FINAL PRODUCT IS NOT UNDER GST. BUT FIXED ASSETS ARE PART OF MANUFACTRING PROCESS.

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3 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 18 June 2018

Originally posted by : Pravin Agarwal

ALCOHOLIC BEVERAGES ARE NOT INCUDED IN GST. NOW GST IS APPLICABLE ON NEW MACHINERY,SPARES ETC. USED FOR PRODUCTION PURPOSES.

HOW TO CLAIM FOR REFUND OF GST AMOUNT ON MAHCINERY?

SINCE FINAL PRODUCT IS NOT UNDER GST. BUT FIXED ASSETS ARE PART OF MANUFACTRING PROCESS.

54. Refund of tax

(3) Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilized input tax credit at the end of any tax period: Provided that no refund of unutilized input tax credit shall be allowed in cases other than-
(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:

So You are not eleigible to claim Refund.