Understanding GST Refunds for International Organizations and Diplomatic Missions in India
<p>**Key Highlights:**</p><p>1. **Entitlement to Refunds:**<br> - The Central Goods and Services Tax (CGST) Act, 2017, under Section 55, allows the government to specify UN agencies, international organizations, foreign diplomatic missions, and consular posts in India to claim refunds on taxes paid for goods and services.<br> - Notification No. 16/2017-Central Tax (Rate) dated 28.06.2017 specifies the entities eligible for these refunds.</p><p>2. **Compensation Cess:**<br> - The Goods and Services Tax (Compensation to States) Act, 2017, ensures that the provisions of the CGST Act apply to the levy and collection of Compensation Cess.<br> - Section 9(2) of the Compensation Cess Act states that the CGST Act's provisions, except for the form to be filed, apply to claiming refunds.</p><p>3. **Clarifications and Notifications:**<br> - Circular No. 68/42/2018-GST clarifies that the specified international organizations and diplomatic missions are entitled to refunds of the Compensation Cess on intra-state and inter-state supplies.<br> - The notification ensures that these entities can claim refunds under the same conditions and restrictions as prescribed in the CGST Act.</p><p>4. **Implementation and Challenges:**<br> - The circular addresses any difficulties in implementing these provisions and encourages stakeholders to bring issues to the Board's notice for resolution.</p><p><a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-68.pdf">circular-no-68</a><br> </p>