AAR Rejects GST ITC Refund Clarification Application citing Jurisdictional Restrictions u/s 97(2) [Read Order]
AAR rejected the refund query and held that refund matters fall outside the scope of advance rulings under Section 97(2) of the CGST Act.
![AAR Rejects GST ITC Refund Clarification Application citing Jurisdictional Restrictions u/s 97(2) [Read Order]](https://images.taxscan.in/h-upload/2025/08/06/2073613-gst-itc-refund-taxscan.webp "AAR Rejects GST ITC Refund Clarification Application citing Jurisdictional Restrictions u/s 97(2) [Read Order]")
The Gujarat Authority for Advance Ruling (AAR) has rejected an application seeking clarification whether the refund of Goods and Services Tax (GST) Input Tax Credit (ITC) was restricted on the outward supply of products in which a notified product is used as an inward supply. The application was rejected as the clarification related to refunds falls outside the purview...
The Gujarat Authority for Advance Ruling (AAR) has rejected an application seeking clarification whether the refund of Goods and Services Tax (GST) Input Tax Credit (ITC) was restricted on the outward supply of products in which a notified product is used as an inward supply.
The application was rejected as the clarification related to refunds falls outside the purview of advance rulings as defined under Section 97(2) of the Central Goods and Services Tax (CGST) Act, 2017.
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The applicant, Saket International is a GST-registered supplier engaged in the supply of clay, which is taxed at 5% under GST. The applicant conducts inward supply of Clay/Felspar/Slary Powder, Soda ash/Sodium meta silicate, and Coal at GST rates of 5%, 18% and 5% respectively for the outward supply.
As per Notification No. 5/2017-CT (R) dated 28.6.2017 read with Notification No. 9/2022-CT (R) dated 13.7.2022, coal is listed among the goods for which no refund of unutilized input tax credit (ITC) is allowed, and also credit accumulation arises due to input tax being higher than the output tax rate.
The AAR noted that the provisions of both the CGST Act and the Gujarat Goods and Services Tax (GGST) Act are the same except for certain provisions.
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The bench comprising P.B. Meena (Central Member) and Kamal Shukla (State Member) rejected the application as advance ruling under Section 95 and Section 97 is limited to seven specific issues listed in Section 97(2), and ‘refund’ is not amongst the seven issues listed in Section 97(2) and thus outside the jurisdiction of Section 97(2) of the CGST Act.
The Applicant was represented by Satish L Kalariya and Shivani Rayjada.
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