VAT Guide to Value Added Tax - sri lanka inland revenue ...

* Credit for input tax will be given during the project implementation period
in spite of the fact that there is no output tax during that period. The
output tax = 0 and therefore the input tax will be refunded.
* Such persons are required to furnish monthly returns and monthly
refunds will be made to them.
ii.
Even BOI enterprises are required to get this approval from C.G.I.R in order to
get this facility.
iii
If such new enterprise is importing project related goods (i.e goods required
before the commencement of commercial production) then they are also entitled
to deferment facility at the Customs as explained in para 6.2.1. In these cases
the refund due to them is issued to the Customs after verifying from the Cus-
Decs, the VAT payable to Customs. They are therefore not required to pay VAT
up front at the Customs. But they should maintain VAT accounts and registers
of import as explained in para 15.7
iv
CGIR can extend the period of 30 months if he is satisfied that commercial
production cannot commence within that period.
11.5 Refund of Excess input tax – Zero rated supplies
• In the case of zero – rated supplies output tax = 0. Input tax will therefore have
to be refunded.
• If a person has more than 50% zero–rated supplies or if he has less than 50%
zero-rated supplies but he is in the VAT deferment scheme then such person is
required to file monthly returns and monthly refunds will be granted if entitled to.
• If his zero-rated supplies is less than 50% of the total supplies then the monthly
refund will be restricted to the VAT deferred, if any, at the Customs or he will be
treated as a quarterly taxpayer.
• Once you are registered as a more than 50% case, i.e as an entity entitled to
monthly refund of input tax, the position will be reviewed once in six months to
check whether you continue to be in that category.
11.6 Refunds of Excess input tax under G.S.T
Excess input tax in GST returns will not be carried forward to VAT returns. They will be
separately refunded except in the case of importers mentioned above.
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