GST QUERY RELATED TO REFUND APPLICATION

This query is : Resolved

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Discussion on GST refund under Rule 89(4) involving branch transfers and export sales. Experts clarified that branch transfer value forms part of Adjusted Total Turnover and discussed whether ITC related to branch transfers can be included in Net ITC for refund calculations.

yamini devle

yamini devle (Querist)
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12 February 2026 WE HAVE A BRANCH TRANSFER AND EXPORT SALES DURING THE RELEVANT PERIOD. NOW WE WANT TO APPLY FOR THE REFUND OF ACCUMULATED INPUT TAX CREDIT AS PER RULE 89(4) FOR THE RELEVANT PERIOD. WHETHER ADJUSTED TURNOVER DEFINITION INCLUDE THE BRANCH TRANSFER AMOUNT OR NOT??.
PLEASE GUIDE US AND IF POSSIBLE THEN PROVIDE THE SECTION REFERENCE FOR OUR BETTER UNDERSTANDING

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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12 February 2026 Yes, branch transfer value must be included in “Adjusted Total Turnover” for refund calculation under Rule 89(4), since it qualifies as taxable supply forming part of Turnover in State under Section 2(112).

Relevant provisions:

Section 54(3) CGST Act

Rule 89(4) CGST Rules

Section 2(112) CGST Act

Section 7 read with Schedule I (distinct persons)

yamini devle

yamini devle (Querist)
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13 February 2026 thank u sir for your valuable reply . but i want to ask one more question that the ITC credit of that sale can be claimed by the branch for their refund of export( accumulated ITC ) application???
So the Net ITC include the branch credit in calculation of refund under rule 89(4)

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