Gst refund -applying for refund of itc on account of exports

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Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2018 Hello Sir,
i am going to apply for Export Refund on GST FORM RFD-01 A under a option of -Refund of ITC on Account of Exports Without Payment of Tax, there is a Formula for calculation of Refund is-[ Turnover of zero rated supply of Goods & servies × Net Input Tax Credit ÷ Adjusted total turnover ]
In this Formula, i didn't understand what is "Net Input Tax Credit " ? because the Refund calculation base on this, so please tell me.

Thanking You,

Joswin Punchakunnel

Joswin Punchakunnel (Expert)

28 February 2018 Net ITC has been explained in Rule 89(4) of CGST Rules 2017. Net ITC means input tax credit availed on inputs and input services during the relevant period

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2018 BUT SIR, IT IS A INPUT TAX CREDIT OF TOTAL PURCHASE IN SUCH RELEVANT PERIOD OR A INPUT TAX PAID ON INPUTS (PURCHASE) WHICH USED FOR EXPORT? THIS IS CONFUSION, PLEASE TELL ME

Joswin Punchakunnel

Joswin Punchakunnel (Expert)

28 February 2018 Dear,
You should be using input tax credit of the total purchase. Thus by using the formula it would calculate the input tax credit attributable to the exports. Hope this helps.
Regards.

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2018 ok.... but sir, suppose in 1 month, there is a Export (zero rated supply) of some amt and No ITC Credit (No any purchase) in that particular month. because export of goods is of previous month stock, In this case as per calculation of that formula, my refund will be 0. ?

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2018 Please sir, reply me ,solved my query

Joswin Punchakunnel

Joswin Punchakunnel (Expert)

28 February 2018 Yes. Since in the previous month, ITC of the said purchase would have been included in the "Net ITC" and thereby you are not denied any benefit.

Praveen

Praveen (Expert)

09 May 2018 After calculating maximum refund amount, how would I know the refund amount to be claimed.
Should I claim what is calculated or how would I check the refund amount to be claimed.
In textile fabric export input are @5% and zero rated export turnover is suppose Rs. 100000, now if maximum refund admissble is calculated (as per fourmula) Rs. 8000, then should I claim Rs. 8000 or Rs. 5000 (i.e. 100000 x 5%)

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

30 October 2026 On the later question: claim the formula amount (Rs 8,000 in the example), not 5% of export value, but the refund is limited to the lower of that amount and the balance in the electronic credit ledger at the end of the tax period and at the time of filing RFD-01; for goods, export turnover is also capped at 1.5 times the value of like domestic supplies.

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