Refund of GST on account of export without payment of tax

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This discussion clarifies GST refund procedures for businesses exporting goods without paying tax. It addresses whether the entire unutilised input tax credit (ITC) is refundable or only a proportion linked to export sales. The experts also discuss determining the correct month for refund applications based on invoice and customs clearance dates, referencing Rule 89(4) for calculating the refund amount based on export turnover and adjusted total turnover.

Nikhil Sharma

Nikhil Sharma (Querist)

28 June 2020 Dear Experts,
Pls clarify my following query pertain to GST refund:-

1) if we have export as well domestic sale in such scenario will refund of entire unutilized credit be refund or only proportionate to input used to export sale,

2) we have issued our commercial invoice as on 31/05/2019 inclusive eway, whereas custom copy of Nepal border is of 02/06/2019, so in this case in respect of GST refund for which month we will file refund application whether for may or June,

Thanks & Regards
Nikhil sharma

Lekhraj sood

Lekhraj sood (Expert)

28 June 2020 1. Proportionate to export turnover (based on average turnover)= ITC/total turnoverX export turnover.
2. In May,19.

Nikhil Sharma

Nikhil Sharma (Querist)

30 June 2020 Respected sir,
Can you pls provide me the section or any rule which state that unutilized iTC shall be refund proportionate to export sale

Lekhraj sood

Lekhraj sood (Expert)

30 June 2020 Rule 89(4).
[(4) In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the following formula –
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover

Nikhil Sharma

Nikhil Sharma (Querist)

08 July 2020 Ohk! Sir our refund is pertain to may 2020 with eligible refund of 34340 but in credit ledger at the end of May CGST has 7897 and SGST has 61970 however since our purchase is intra state hence we should claim refund proportionately 50% 50% but today we have Nil balance in CGST credit ledger , in this case should I claim entire refund amount i.e. 34340 from SGST

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