GST Refund on Edible Oils

Published on: Mon Aug 01 2022
GST Refund on Edible Oils

At present, oil millers acquire raw materials with an 18% GST, yet they are only able to apply a 5% GST on their final products. This leads to a surplus of 13% that is retained by the government. In June, the GST Council opted not to reimburse this surplus on edible oils, leading to what the association describes as an "indirect increase" in GST on edible oils.

GST Rates On Edible Oil

GST on normal and blended edible oil is 5%. Earlier blended edible oil was put under 18% GST rate.

With regards to the new changes in formula and disallowances of refund on certain commodities, the doubts that must be arousing in all your minds can be:

  • What would be the impact of the above changes on the taxpayers who were availing of such refunds earlier?
  • What will happen to those refunds which have already been filed or refunded in litigation?
  • For the periods for which the refund application is yet to be filed, can the taxpayer still file the same? If so, can the proposed refund calculation be considered for filing such refunds?

The above situations can be summarized as:

GST Refund ON EDIBLE OILS Eligibile

SituationEligible for refund or not
What will happen to those taxpayers who have already filed the refund applications, but the refund is yet to be received?Eligible to get the refund and amendment would not be applicable.
What about those who have already filed the refund application but the refund is in litigation?Eligible to get the refund and amendment would not be applicable
What is the eligibility in the case of those taxpayers who are yet to file the refund application for the tax periods before the disallowance came?Eligible to get the refund relying upon the judgment given in the case of Ashish Katiyar [(2019) 111 524 (Allahabad)], these notifications will not be having retrospective effect.
What, if a taxpayer file the refund application for tax periods falling after the issuance of notification?Not eligible to get the refund for those tax periods, post the amendment came. 


From the above, it can be inferred that a GST refund ON EDIBLE OILS can still be claimed, post the disallowance of the same vide the above-mentioned Notification.

So, if you are also looking for a solution or struggling to get a GST refund in the above situations, please feel free to connect with India’s #1 GST Refund Consultant!

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