Coriolis Corp Newsletter May 2025

Dear All, 

 

Broadly speaking, levy of GST as introduced in India is based on the concept of Value Added Tax (VAT).  Principle of VAT is that credit of taxes paid on inputs is available only when tax is payable on the outputs, except for Zero-Rated Supplies.

‘Zero-Rated supply’ means export of goods or services or both and supplies of goods or services or both to SEZ Units or SEZ Developers for their authorized operations.  

The registered person making zero-rated supplies can claim refund of IGST paid by him or claim refund of taxes paid on inputs or input services. The benefit of refund of IGST or ITC, as the case may be, is based on the concept that goods or services should be exported and not the taxes.  

Refund of tax being one of the beneficial provisions, we have thought it appropriate to share a brief note on “Refunds Under GST” under Knowledge Katta section of this Newsletter.

 

(Part II of the note would be covered in the Newsletter for the month of June, 2025).