Section 54 Amendments

Section 54 (8) of CGST Act states the conditions under which

refund can be claimed and clause (a) specifies that refund of
tax is paid on zero-rated supplies
Clause (a) has been amended to provide for refund of tax
paid on export of goods or services for making such exports

Analysis: This will principally ensure that the principle of

unjust enrichment to supplies made to SEZs is there.

Section 54 Explanation 2(c): The following lines have been

added to this explanation:
‘Or in Indian rupees wherever permitted by RBI’
Analysis: This amendment allows for the receipt of payment
of exports of services in Indian rupees, wherever permitted
by RBI

Section 54 explanation 2 (e)

‘In case of refund of unutilized ITC, under clause (iii), the
end of financial year in which such claim arises.’
These lines have been changed to:
‘Under clause (ii) of first proviso of subsection (3), the due
date for furnishing the return under section 39, for the
period in which such refund has been claimed.
Analysis: This change simply implies that the date relevant
for refund of unutilized ITC under SEZ supplies is the due date
for filing GST returns under section 39 and not the end of the
financial year. For all other ITC refunds, it is still the end of
the financial year.

RULE 89
There has been a change with regard to the formula of
accumulated ITC under zero-rated supplies.
(Turnover of zero-rated supplies of goods and services) * Net
ITC / Adjusted total turnover
The definition of adjusted total turnover was changed and it
now excludes the turnover of services which includes
turnover from zero rated and non-zero rated services.