GST Expenses ITC Refund

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Quick Summary

Businesses exporting goods and services without paying tax under LUT can generally claim a refund of Input Tax Credit (ITC) on related expenses. While theoretically all expenses are eligible, practical challenges exist as tax officers may deny claims. It's advisable to be prepared for potential scrutiny and understand the online procedure for claiming your ITC refund via the GST portal.

ARCHANA

ARCHANA (Querist)

27 October 2021 Sir/Mam,

Export with out payment of Tax business Type, If they have chance to claim ITC on Expenses Refund. which expenses can claim refund.

If it is possible what is the procedure.

Thanking you,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 October 2021 ITC refund can be claimed on all expenses related to exports.

Online Procedure To Claim Refund of Input Tax Credit
Step 1: visit the official portal of GST department.
Step 2: Click the Services and select “Application for Refund” tab from the Refund menu.
Step 3: On the next page, select the Refund of ITC on Export of Goods and Services without Payment of Tax option.

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ARCHANA

ARCHANA (Querist)

27 October 2021 Thank your sir for your quick reply, Expenses : Freight, Stationery, office expenses , AMC, computer maintenance and Office Assets purchased etc ITC we can claim Refund

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 October 2021 Yes, you can claim refund if you are doing only export business.

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ARCHANA

ARCHANA (Querist)

27 October 2021 Yes Sir, Thank your sir for your reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 October 2021 You are welcome........

CA Raj Doshi

CA Raj Doshi (Expert)

02 November 2021 Theoretically, all expenses are eligible for refund claim in case of LUT exports. However, officers generally deny. Better to exclude in the initial working itself than getting it rejected later. Happened for my client so practically this is how it works. The officers are in the excise and service tax regime only where they will refund ITC of inputs/input services only if the same was used for exports. Pathetic!

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ARCHANA

ARCHANA (Querist)

02 November 2021 Thank your sir for your reply

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