In the 47th GST Councils meeting, vide notification no. 14/2022, the Government of India incorporated rule 89(5) under CGST Rule, 2017 which prescribes the formula to calculate the refund amount.
Recently, the Government of India vides notification no 09/2022 – Central Tax (Rate) dated 13.07.2022, notified that refund of Input Tax Credit (ITC) accumulated owing to inverted duty structure would not be allowed for several commodities such as oils, coals, olive oil, palm oil, coconut oil, etc, i.e. GST Refund on Edible Oils may not be allowed now, let’s look into it.
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
| Situation | Eligible 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 taxmann.com 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 mygstrefund.com India’s #1 GST Refund Consultant!