GST Refund

Hi,

There are two types of Refund in GST in export case,

1. Refund of IGST paid on export: without considering ITC

2. Refund of ITC, if export at zero rated.

My question:

Say IGST paid on export Rs. 100 and claimed refund & received.

and ITC paid on purchase Rs. 1000 and shows in electric ledger.

Now how to claim Refund of excess 900 balance remains in credit ledger? Please suggest rule or procedure.

 

Replies (3)
Quick Summary
This discussion clarifies the process of claiming GST refunds for exports, distinguishing between refunds of IGST paid on exports and refunds of unutilised Input Tax Credit (ITC). It explains that ITC can generally only be claimed as a refund when goods are exported under a Letter of Undertaking (LUT) or Bond without payment of tax. If IGST was paid on exports, the refund is calculated as the output liability minus available ITC, and unutilised ITC in such cases cannot typically be refunded directly.

Brother i think you have understood it wrongly.

Firstly do you agree that whenever i pay output gst we pay net of ITC i.e. after adjusting ITC

Now, solving your example
1) If i am paying IGST on export :- Refund = Output liability - ITC available in credit ledger = 1000 - 900 = 100 ( this is the amount that you have paid to government as tax)

2) If i am exporting under LUT / BOND without payment of IGST : Refund = ITC in credit ledger = 900

Hope it helped 🙂

Firstly do you agree that whenever i pay output gst we pay net of ITC i.e. after adjusting ITC

TRUE...

Now, solving your example

1) If i am paying IGST on export :- Refund = Output liability - ITC available in credit ledger = 1000 - 900 = 100 ( this is the amount that you have paid to government as tax)

IN MY CASE: OUTPUT LIABILITY IS 100 DUE TO LOWER GST RATE ON EXPORT - ITC 900.... REFUND CASE NOT ARISE..

 

2) If i am exporting under LUT / BOND without payment of IGST : Refund = ITC in credit ledger = 900

 

BUT WE PAID IGST ON EXPORT AND CLAIM REFUND..

 

ok I will explain differently: 

GST on output: 10000 * 1% = 100

GST on Input : 9000 * 18% = 1620

we claimed refund 100 on export...how to claim Unutilized credit balance of 1520??

As per Section 54 , Unutilised ITC can be claim as refund only when Export made without payment of Tax (with lut)

Hence you cannot claim refund for 900/- lying in you ECL

Yes Export done without payment of tax (With lut) , then you are liable claim refund for 1000/- Unutilised ITC lying in your ECL by filing RFD01 online on portal

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