Gst refund

Plz clarify "We print and sell our own branded clothes within the USA and Canada directly
from our Indian company"

The Indian Company is in India ???? & whether You are exporting your goods to USA ?????

Kindly seek advice from a professional.

most, do not have the answer to this, they don't even believe these GST update, Only One I found after the very hardship was able to understand the matter.

Big giants suggest shifting to Singapore and starting selling their products.

Since I am talking about  Schedule III, it clearly explains the movement of goods, from a non-taxable territory to another non-taxable territory so yes, we are not exporting anything from India however, we get manufactured cloths from USA itself and we market in USA through Indian company the model is Called POD(print on demand). But working through an Indian company.

If it has been exporting, then I would not have been talking about schedule iii.

Thank you for your reply Pankaj sir!

But yha, all the foreign exchange does come to India.

Kindly refer rule 42 you will get more clarity.

can you send rule 42 docs or link, rule 42 of get?

rule 42 tells about exempt, schedule III activities are excluded from ambit of exempt. And there are already numerous amount of posts on the forum that there is no need for a reversal of ITC under schedule III as its have been put outside of ambit for exempt.

 

Anyway thank you

You could find the same in the app itself named as Rules.

does anybody have any kind of suggestion?

Dear Yash Raj
As you are doing Merchant trading & as per Amendment act 31 of 2018 , the same has been brought under Schedule III. it's Neither supply of Services nor supply of Goods.

So Rule 42 & Section 17 of CGST Act do not invoke in case if Outward supply cover under Schedule III .

Hence you are not required to Reverse your ITC, as well as you cannot claim refund for the same as for refund the condition prescribed in Section 54 of CGST need to satisfy.

Conclusion:
1. Not required to reverse ITC (Will be lying in your credit ledger)

2. Cannot claim refund .

Thank you for your reply sir, i have attached the image of Inverted Duty structure, can you go through it? I think i meet all its conditions and criteria.

The Inverted Duty Structure :
kindly Read "when the Outward supply is Nil Rated or wholly Exempted" BUT in your case Your Outward is neither Nil Rated , nor Exempted' The activities cover under Schedule III are not fall under the Defination of Exempted or Nil Rated supply .

Kindly Refer the Definition of Exempt supply u/s 2 (47) of CGST Act .

Note : The supply you does neither supply of goods nor supply Services , hence cannot claim refund for Un-utilised ITC .