Vat on purchase for export of material

This query is : Resolved

preet prakash (Querist)
Follow

27 June 2016 Hi All
For an exporter - input vat on packing material - should claim vat refund or should debit the whole amount as expenses???????
thxn
preet

Rupesh Jain

Rupesh Jain (Expert)
Follow

27 June 2016 its depend on the vat act, if you are making the export outside the india.

preet prakash

preet prakash (Querist)
Follow

27 June 2016 didn't follow, kindly clarify, i am exporting from Maharashtra, buying locally!!!!!!!!!!!

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

27 June 2016 When you filed VAT you will have to write sales as exempted from tax and shown output tax as NIL and on the other hand you have collect purchase invoice including VAT input tax which was paid by you. so while filling vat return you tax liability will be refundable or carry forward. i.e output - input = excess payable or input - output = excess refundable or carry forward.

Message likes : 1 times

preet prakash

preet prakash (Querist)
Follow

30 June 2016 r u sure that i can claim refund????????

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

02 August 2025 Hey Preet, here’s a clearer picture regarding VAT on packing material purchased locally for export from Maharashtra:

---

### VAT on Packing Material for Export:

1. **Exports are zero-rated under VAT:**
The sale (export) is considered **zero-rated or exempt**, so you don’t charge VAT on the exported goods.

2. **Input VAT on Packing Material:**
Since packing materials are used for export, you have **input VAT paid** on these purchases.

3. **Claiming VAT Refund:**

* You can **claim refund of the input VAT** paid on packing materials used in export.
* This is because export sales are zero-rated; you have no output VAT liability, so input VAT can be refunded.
* You must properly document that the packing materials are used for export goods.

4. **If you don’t claim refund:**

* You can debit the VAT as expense but that means you are bearing the tax cost, which is not ideal.

---

### Important Points:

* Maintain proper records and proof of export.
* Follow Maharashtra VAT refund procedures and file refund claims within prescribed timelines.
* Sometimes the refund process can be lengthy, so plan accordingly.

---

### So yes, you **can claim VAT refund** on packing material used for export.

---

If you want, I can guide you on how to file for VAT refund in Maharashtra or what documents you need. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now