The tax refund will not take place towards the extent of the non-reversal ITC under GST said by the commissioner.
The petitioner is the owner of the M/s Stone Craft (India) Pvt Ltd which is a 100% exporter and poses the business of purchasing, processing, and exporting of the natural stone and does not involve in any domestic supply of goods and furnish the claims for the GST refund under Section 54(3) of CGST Act, 2017 for non-utilized input Tax Credit.
The petitioner said that nothing is been said by the impugned orders. As the refund has been made via electronic process thus restricting the electronic system on the brief basics of refund sanction/ rejection can be given in refund orders that are Form RFD-06. But in Form RFD-06 a brief calculation chart of non-admissible refunds has not been provided because of the limitations of the electronic system.
The commissioner rendered that the refund claim of Rs 60,06,181 for the duration of March 2022 to May 2020. The same was seen that under GSTR-3B return furnished towards the month of March 2020 the petitioner and a zero-rated supply of goods of Rs 2,44,81,281 has indeed mentioned in the privileged supply of Rs 11,16,382 however not reversed input tax credit in terms of section 17 (1)(2) of the CGST Act, 2017 read with Rule 42(1) of the CGST Rules, 2017 on account of exempted supply.
“The same has provided that since the petitioner has not revered the input tax credit on the privileged supply thus JRO in the examination of the refund in units net ITC under section 17(1)(2) of CGST act 2017 read with rule 42(1) of CGST rules 2017 for the computation of the admissible refund to the petitioner and seems the amount Rs 54,44,354 refundable to the assessee and Rs 5,61,827 is nonrefundable.”
JRO SCN submit the verification report to see that was given to the petitioner with the remarks that refund not acceptable to the non-reversal of input tax credit beneath the rule 42(1) of CGST Rules read with Section 17(2) of the CGST Act, 2017. The submission given by the petitioner in answer to SCN under GST was acknowledged and does not seem eligible as per the refund of Rs 54,43,390 reveals permissible was provided and Rs 5,62,791 was canceled.
