ITC Related to Exports

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This query is : Resolved

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A new eBay export seller is asking for clarification on claiming Input Tax Credit (ITC) for GST paid on invoices from eBay, PayPal, and DHL. They have obtained a Letter of Undertaking (LUT) for exports and want to know if they can utilise this ITC when filing their GSTR 3B. The advice confirms that ITC is allowed in this scenario and can be utilised directly in the GSTR 3B. The seller also inquired about the RFD-01 form, which is used to claim refunds for any unutilised ITC remaining after GSTR 3B filing.

Preeti

Preeti (Querist)

15 July 2021 hi
im a new ecommerce export seller on eBay.
i take USD payment via PayPal and want to ship DHL etc.
Can i take ITC for the 18% gst from the invoices i will get from ebay, paypal and dhl?
Is it allowed?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 July 2021 ITC allowed in such export.

Preeti

Preeti (Querist)

15 July 2021 thank you sir for the reply..
i have taken LuT to do export..in that case also am i allowed to use ITC?

Preeti

Preeti (Querist)

15 July 2021 thank you sir for the reply.. i have taken LuT to do export..in that case also am i allowed to use ITC?

Preeti

Preeti (Querist)

15 July 2021 also, while filing gst3b, can i utilise this itc
or is there a separate process to claim this itc amount?

please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2021 In that case also you are allowed to use ITC.
Utilise the ITC while filling GSTR 3b.

Preeti

Preeti (Querist)

16 July 2021 thank you sir..
could you please clarify when to use RFD-01 refund application?
Is it for excess remaining ITC even after utilising in gstr 3b?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2021 Yes, you are right, it's claim refund for unutilised ITC

Preeti

Preeti (Querist)

16 July 2021 thank you so much sir

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