New provisions under section 16(3) of IGST Act, 2017
New provisions under section 16(3) of IGST Act, 2017, introduced in Union Budget 2021
Explanation:
A registered person making zero rated supply shall be eligible to claim a refund of the unutilized input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards, and procedure as may be prescribed.
In case of non-realization of sale proceeds, such registered person shall be liable to deposit the refund so received along with the applicable interest under section 50 of the Central Goods and Services Tax Act within 30 days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 for receipt of foreign exchange remittances, in such manner as may be prescribed.
The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify–
(i) a class of persons who may make zero-rated supply on payment of integrated tax and claim a refund of the tax so paid;
(ii) a class of goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim the refund of tax so paid.”.
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