No provisional refund of ITC to categorized zero-rated suppliers


As per the GST law, the taxpayers were granted a provisional refund of 90% of the total refund claim in case the goods supplied by the supplier are “zero-rated supply”. The said provisional refund was paid within 7 days after giving the acknowledgement. The acknowledgement of refund is generally issued within a period of 14 days but in case of refund of integrated tax paid on zero rated supplies, the acknowledgement is issued within a period of three days. However, the provisional refund is not granted to such supplier who was, during any period of 5 years immediately preceding the refund period, was prosecuted.

On recommendation of the Goods and Services Tax Council, the state (Jharkhand) Government hereby notifies the following category of registered persons who shall not be eligible for refund of 90% of the total amount claimed as refund on account of zero-rated supply of goods or services or both on a provisional basis, namely:-

  • Any registered person who has been granted registration under the said Act or under the existing law within a period of six months from the date of application for refund;


  • Any registered person who has not furnished the returns for three consecutive tax periods immediately preceding the date of application for refund.

The notification shall be deemed effective from 17th August, 2017. Please refer the Notification – no-provisional-refund-of-itc-if-zero-rated-supplier-didnt-file-returns-of-3-consecutive-periods-jharkhand-govt.


Leave a Reply

Your email address will not be published. Required fields are marked *