M/s Surajbhan & Co. is registered under GST in the state of Maharashtra. They have made zero-rated supply of goods worth - 84,50,000 without…

Rule 86 of the CGST Rules, 2017 provides that where a registered person has claimed refund of any unutilized amount (i.e. ITC) from the electronic credit ledger in accordance with the provisions of section 54 of the CGST Act, the amount to the extent of the claim shall be debited in the said ledger. If the refund so filed is rejected, either fully or partly, the amount so debited to the extent of rejection, shall be re-credited to the electronic credit ledger by the proper officer. In the present case, M/s Surajbhan & Co., have made zero-rated supply without payment of IGST for 10,14,000 and the refund for the same has been rejected by the proper officer. Therefore, contention of Mr. Abhay is sustainable as debit entry in the Electronic Credit Ledger has been made as per sub-rule (3) of Rule 86 towards “refund of any unutilized amount”.