Refunds of unutilized input tax credit at the end of any tax period may be claimed and allowed in respect of supplies of export of goods or services or both as the case may be (being zero rated supplies) claimed and allowed if the following conditions are satisfied :
- The amount for which the claim of refund has been made must reflect in the electronic credit ledger of the concerned person .
- The supplies of export have been executed without payment of any tax .
- The goods exported out of India have not been subjected to export duty.
- The supplier of goods or services or both has not claimed the refund of integrated tax paid on such supplies .
- No refund of input tax credit regarding central tax shall be allowed if the supplier of goods or services or both has availed drawback in respect of central tax .
However no such condition has been mentioned in respect of refund of state tax as no drawback is availed in respect of state tax .
After examining the aforesaid conditions the provisional refund shall be allowed to the tune of 90% of the total amount so claimed as per the provisions embodied in sub-section (6) of section 54 and shall be credited to the concerned person as it falls under clause (a) of sub-section (8) of section 54 .