Goods and Services Tax

Eligibility of input tax credit of CESS on Coal

GST – Started By: – Kaustubh Karandikar – Dated:- 9-1-2019 Last Replied Date:- 12-1-2019 – XYZ (Manufacturer) receiving Coal where the supplier is charging CESS in the Tax Invoice. Can XYZ take input tax credit of the CESS charged in the invoice? If no, is there any specific provision under the law to deny the credit? – Reply By KASTURI SETHI – The Reply = It is a compensation cess and ITC can be taken with the restriction that it can be used for payment of compensation cess only – Reply By SHARAD ANADA – The Reply = If you are exporting goods without payment of dutry you can claim refund of coal cessc pl. refer circular 45 CGST dated 30.05.2018 . para 5.refund of unutilized input tax credit of compensation cess availed on inputs in cases

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s) Act, 2017, (hereafter referred to as the Cess Act), all goods and services specified in the Schedule to the Cess Act are leviable to cess under the Cess Act; and vide section 11 (2) of the Cess Act, section 16 of the IGST Act is mutatis mutandis made applicable to inter-State supplies of all such goods and services. Thus, it implies that all supplies of such goods and services are zero rated under the Cess Act. Moreover, as section 17(5) of the CGST Act does not restrict the availment of input tax credit of compensation cess on coal, it is clarified that a registered person making zero rated supply of aluminum products under bond or LUT may claim refund of unutilized credit including that of compensation cess paid on coal. 5.3 Such regis

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