SEZ is entitled for refund of ITC distributed by ISD1
Bhaskar Thakkar
Passionate Golfer & Founder BT Associates (Indirect Tax - Consulting firm) & GSTidea.com (Knowledge Sharing Portal on GST)
Facts of the case
The petitioner is a unit located in Special Economic Zone and is not able to utilize the credit of the Input tax credit of IGST from its ISD. Petitioner filed an application for refund in FORM RFD-01A but the same was rejected. It is to be noted that the stand of the department that the petitioner is not entitled to seek the refund of the ITC paid in connection with goods or services supplied to SEZ unit is not tenable.
Submission on behalf of the petitioner
It was submitted by the petitioner that Section 2(61) of the Central Goods and Service Tax Act, 2017 defines “input service distributer”means
“an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax,