but we are not liable to recover from party .. as we going to claim refund
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Suppose If I export goods for Rs. 100000 and importer will pay 100000 only and to follow the principle of "export the goods not the taxes" how will you post the amount to the above entry
ITC means credit of input tax. And input tax means - "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes-
[a] the integrated goods and services tax charged on import of goods;
[b] the tax payable under the provisions of sub-sections [3] and [4] of Section 9;
[c] the tax payable under the provisions of sub-sections [3] and [4] of Section 5 of the Integrated Goods and Services Tax Act;
[d] the tax payable under the provisions of sub-sections [3] and [4] of Section 9 of the respective State Goods and Services Tax Act; or
[e] the tax payable under the provisions of sub-sections [3] and [4] of Section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy;
As you can see tax paid on export is not covered here so no question of netting off. It will be straight away refunded.