Gst refund for export of exempted goods

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SANGEETH KUMAR.P

TAX PRACTITIONER

81 Points Posted on 13 May 2019

Hello Friends,

One of my client is exporting exempted goods. Whether he can apply for ITC GST Refund through RFD-01?

He is selling only exempted goods - domestic and export.

While reading a book "Refunds under GST" - Treatment for Zero Rated Supplies category, they clearly shown that ITC can be claimed for even exempt supplies. Those lines are

"On account of zero rating of supplies, the supplier will be entitled to claim input tax credit in respect of goods or services or both used for such supplies even though they might be non-taxable or even exempt supplies"

Suggest me friends, whether to claim ITC refund or not?

With Regards,

Sangeeth Kumar.P

Replies (3)

Saurav Bhattacharya

162 Points Posted on 13 May 2019

claim ITC otherwise ITC will collapse

Pankaj Rawat

GST Practitioner

29904 Points Posted on 13 May 2019

As per section 16(2) of the IGST Act, credit of input tax may be availed for making
zero rated supplies, notwithstanding that such supply is an exempt supply.

And As per Circular 45/19/2017 :

Registered person making zero rated supply for Exempted goods shall be eligible
to claim refund of Unutilised Input when he either makes supply of goods or services or both under bond or LUT or makes such supply on payment of integrated tax.

You can claim refund by filing RFD 01 online on portal

Nandini H Gupta

Chartered Accountant

279 Points Posted on 13 May 2019

Yes , As per section 16(2) of the IGST Act, credit of input tax may be availed for making zero rated supplies, notwithstanding that such supply is an exempt supply.

Further it is specifically clarified in 45/19/2018-GST, that even if such exempted supply is exported without LUT the exporter would be eligible for refund of unutilized input tax credit