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Export of Goods Query

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)

24 February 2024

Dear Members

As per proviso to section 54(3) of CGST Act, no refund of ITC is available where goods exported out of India are subjected to export duty.

Does this export duty mean customs duty payable on export of goods.

Request your views please.

Regards

CA Dipjyoti Majumdar

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4 Replies

sabyasachi mukherjee (26132 Points)
Replied 25 February 2024

Duty abatement is one thing and imput tax credit is another aspect.

Money Money (383 Points)
Replied 26 February 2024

Export duty and customs duty are different types of taxes that are imposed on the movement of goods across international borders. Export duty is levied only on exported goods, while customs duty is levied on both imported and exported goods12.

As per the proviso to section 54(3) of the CGST Act, no refund of input tax credit (ITC) is available where the goods exported out of India are subjected to export duty. This means that if the goods are subject to any tax or duty payable on their export, such as export duty, cess, or any other charge, the exporter cannot claim the refund of the ITC availed on the inputs or input services used in the manufacture of such goods

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 27 February 2024

Thanks for your replies.

Suppose my export turnover of Rs 100 contains export of services Rs 70 and goods Rs 30 and export turnover is realised. Then will the refund be computed like this if my net eligible ITC is Rs 40 and there is no domestic sales -

Net eligible ITC X inward remittances / Adjusted total turnover = 40 X 70 / 100 = Rs 28/-.