Refund Provision for Canteen Stores Department (CSD)

The Central Government, under the Central Goods and Services Tax Act, 2017, designates the Canteen Stores Department (CSD) for refund privileges.

CSD, a Ministry of Defense entity, can claim a fifty percent refund of applicable central tax on inward goods supplies. This refund applies to goods intended for subsequent supply to Unit Run Canteens (URCs) or authorized customers.

The move, effective from July 1, 2017, aims to streamline tax procedures for CSD operations. Recommendations from the Council support this measure, promoting efficient tax management.

Refunds alleviate tax burden on CSD, facilitating cost-effective goods distribution to military personnel and authorized patrons. Such initiatives align with government efforts to support defense infrastructure and welfare