Clarification - Rule 89 (4)

This discussion clarifies Rule 89(4) concerning the calculation of Adjusted Total Turnover for input tax credit refunds. It explains that while exempt supplies like pan masala and tobacco are generally included in turnover calculations, they are specifically excluded when determining Adjusted Total Turnover under Rule 89(4). Exports to SEZs are considered zero-rated supplies, not exempt supplies, and are therefore not included in the Adjusted Total Turnover calculation for refund purposes.