Section 54 of CGST Act, 2017 : Section 54: Refund Of Tax

Explanation using Example

Imagine a scenario where ABC Exports Pvt. Ltd. is an Indian company that exports textiles to foreign countries. They have paid Goods and Services Tax (GST) on the purchase of raw materials and on other input services used to manufacture the textiles. However, since the textiles are exported, the company is making zero-rated supplies, which means GST should not be levied on the final product.

Under Section 54(3) of the Central Goods and Services Tax Act, 2017, ABC Exports Pvt. Ltd. can claim a refund for the unutilised input tax credit because their output supplies (the exported textiles) are zero-rated. To claim the refund, they need to file an application within two years from the relevant date, which in their case, as per S...

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