Doubts are being raised as to whether the refund of the accumulated input tax credit under section 54(3)
of the CGST Act shall be admissible based on the input tax credit as reflected in FORM GSTR-2A or based
on that available as per FORM GSTR-2B of the applicant –
Clarifications:
Since the availment of the Input tax credit has been linked with FORM GSTR-2B w.e.f 01.01.2022 availability of refund of the accumulated input tax credit under section 54(3) of CGST Act for a tax period shall be restricted to input tax credit as per those invoices, the details of which are reflected in FORM GSTR-2B of the applicant for the said tax period or for any of the previous tax periods and on which the input tax credit is available to the applicant.
Also, if a refund claim was processed from January 2022 onwards before this circular was issued, it will not
be reopened because of the clarification in the circular.
Clarification in respect of admissibility of refund where an exporter applies for refund subsequent to
compliance of the provisions of sub-rule (1) of rule 96A –
Clarifications:
Clarification is being sought as to whether after the export of the goods or realization of payment in case
of export of services, the said exporters are entitled to claim not only a refund of unutilized input tax credit on account of export but also a refund of the integrated tax and interest so paid in compliance of the provisions of sub-rule (1) of rule 96A of CGST Rules.
This implies that as long as the goods are exported or as the case may be, payment is realized in the case
of export of services, even if it is beyond the time frames as prescribed, the benefit of zero-rated supplies
cannot be denied to the concerned exporters.
Exporters would be entitled to a refund of unutilized input tax credit u/s 54(3). On actual export of the
goods or the realization of payment in case of export of services.
Further, exporters would be entitled to claim a refund of the IGST tax so paid earlier on account of goods
not being exported, or the payment not being realized for export of services, within the time frame
prescribed. However, a refund of the interest paid is not allowed.
Clarification in respect of the Manner of calculation of Adjusted Total Turnover under sub-rule (4) of Rule 89 of CGST Rules –
Clarifications:
Consequent to the Explanation having been inserted in sub-rule (4) of rule 89 of CGST Rules vide
Notification No. 14/2022- CT dated 05.07.2022, the value of goods exported out of India is to be included
while calculating “Adjusted total turnover”. It will be the same as being determined as per the Explanation
inserted in the said sub-rule.
Source: CBIC Circulars from 50th GST Council Meet (Circular No. 197/09/2023)
