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Excise Duty Exemption | Enhancement of Capital Goods Limit | Re-export of duty free Capital Goods

CST REIMBURSEMENT

Reimbursement of CST may be claimed by the STP units for such payments on account of Inter-State purchases from the DTA in connection with the production of the goods meant for export. The terms and conditions to be fulfilled are as follows:

Reimbursement of CST is admissible only to the STP units who have registered with the Sales Tax Authorities for ST/CST.

Reimbursement is limited to the payment of CST against C form only.

Claim for reimbursement will not normally be accepted if it is not made with in a period of 180 days of the invoice-date or the date of final payment, whichever is later. The decision on the exceptional cases, however, will depend upon the judgment of the Director on application. Claims delayed beyond one year will be rejected.

The application for reimbursement of CST needs to be submitted in the prescribed form accompanied by requisite enclosures, declarations and certificates.

CST reimbursement claim for an amount below Rs. 100/= on any single invoice or multiple invoices will not be entertained.

Claims for CST should be made on quarterly basis within six months from the completion of the quarter to which the claims relate. The quarter will start from the date of full payment.

For reimbursement of CST, only one consolidated claim for a quarter will be entertained and the reimbursement will be made on quarterly basis. Supplementary claims shall not be entertained.

The supplier should be only a DTA unit and not a STP/EOU/EPZ. Claims will not be entertained if both are STP/EOU/EPZ units.

The payments must be made through the Bank or by the Demand draft

The documents for claiming reimbursement of CST are as follows:

	An application for reimbursement of CST in the prescribed format.
	A Chartered Accountant’s certificate as shown in prescribed format certifying receipt of the goods in the bonded premises after scrutiny of the original invoices of the supplier and proof of payment against each invoice and its reconciliation with ‘C’ form.
	Original ‘C’ form plus photocopy. Original receipt from supplier (In case original receipts are not available then, a certificate from the bank showing the payments specifically against the invoice shall be considered)
	Indemnity Bond as per prescribed format on Rs. 50/- non judicial stamp paper, Photocopy of CST registration of buyer as well as the supplier, Self attested copy of Bond Register/MRR (Materials Receipt Register) of Companies to furnish specimen signatures of the authorized signatory to sign the ‘C’ form in triplicate.
	Pre-receipt as per prescribed format [To be typed on plain paper],

Excise Duty Exemption | Enhancement of Capital Goods Limit | Re-export of duty free Capital Goods