Ans: Refund has been discussed in section 54 of the CGST/SGST Act. “Refund” includes (a) any balance amount in the electronic cash ledger so claimed in the returns, (b) any unutilized input tax credit in respect of (i) zero rated supplies made without payment of tax or, (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), (c) tax paid by specialized agency of United Nations or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries on anyinward supply.

Ans: Unutilized input tax credit can be allowed as refund in accordance with the provisions of sub-section (3) of section 54 in the following situations:- (i) Zero rated supplies made without payment of tax; (ii) Where credit has accumulated on account of rate of tax on inputs being higher than the rate of taxes on output supplies(other than nil rated or fully exempt supplies) However, no refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty,and also in the case wherethe supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on suchsupplies.

Ans: Refund of unutilized input tax credit is not allowed in cases where the goods exported out of India are subjected to export duty-as per the second proviso to Section 54(3) of CGST/SGST Act.

Ans: There is no such provision to allow refund of such unutilized ITC at the end of the financial yearin the GST Law. It shall be carried forward to the next financial year.

Ans: Supplies to the Embassies or UN bodies will be taxed, which later on can be claimed as refund bythem in terms of Section 54(2) of the CGST/SGST Act. The claim has to be filed in the manner prescribedunder CGST/SGST Refund rules, before expiry of six months from the last day of the month in which such supply was received.[The United Nations Organization and Consulates or Embassies are required to take a Unique Identity Number [section 26(1) of the CGST/SGST Act] and purchases made by them will be reflected against their Unique Identity Number in the return of outward supplies of the supplier(s)].

Ans: A person claiming refund is required to file an application before the expiry of two years from the “relevant date”as given in the Explanation to section 54 of the CGST/SGST Act.