- SBS AND COMPANY LLP
- Blog
- Hits: 602
Refund of Unutilised Credit – Closure of Unit – Possibility Thereof
We are all aware that one of the cardinal principles of any taxation regime of any country is that to see that the domestic vendors export services or goods but not the taxes. To neutralise the tax burden borne by the domestic vendors in pursuit of exports, the Government, normally allows the tax borne by the vendors/exporters as refund. The refund is normally allowed only to the extent of unutilised input tax credit. In simpler words, if the exporter has domestic supplies also, then he can first use the credit to set off the tax liability on the domestic supplies and then approach the Government for the balance unutilised portion as refund. We have written previously on the refunds under the GST laws , please read An Incisive analysis on Refund of TRAN Credit | SBS Blog before proceeding to read this piece.
Read more: Refund of Unutilised Credit – Closure of Unit – Possibility Thereof