GST Refund Eligibility: When Can a Recipient File for a Refund?

By: Admin | September 18, 2024 | Categories: GST Law | 3 Min Read

Under the Goods and Services Tax (GST) law, recipients of goods or services are not typically entitled to file refund applications for taxes paid, except under specific scenarios permitted by law. Generally, GST refunds are claimed by suppliers or exporters of goods or services. Common instances where refunds are allowed include:

• Excess tax paid
• Export of goods or services (with or without payment of tax)
• Inverted duty structure refunds

Key Points:

• Recipients cannot directly file for refunds for overpaid taxes or unused Input Tax Credit (ITC). Instead, adjustments must be made against future tax liabilities or claimed indirectly through the supplier.
• Under Section 54 of the CGST Act, refunds are typically limited to situations where the supplier is eligible, such as zero-rated supplies (exports) or accumulated credit due to an inverted tax structure.

This emphasizes the limited avenues for recipients to directly claim refunds, reinforcing the importance of coordination with suppliers to address refund scenarios.

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