Gst refund on reverse charge paid for import that is subsequently exported

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Abhishek

Entrepreneur

21 Points Posted on 29 March 2019

Hi All

We are software resellers who import software in the country and sell to Indian customers. On the import, we pay GST on reverse charge basis.

Now, some of our clients are SEZ based in India. So, we don't charge them any GST(as it is a deemed export) and we have LUT in place.

Since GST on input is still paid for items that are subsequently exported, we are wondering if we should ask for refund of the GST paid on reverse charge basis? Is it allowable under GST law?

If yes, what is the process of claiming the refund?

Sincerely

Abhishek

Replies (4)

CA Prakash N

Head - Indirect Tax (GST & FTP)

331 Points Posted on 29 March 2019

Hi Abhishek,

Yes Its allowable. You can claim refund of input GST paid in relation to export of service to SEZ (zero rate supply).

Login to GST website with credentials -> Services-> Refund -> Select reason for refund "On account of supplies made to SEZ unit/ SEZ developer (without payment of tax) -> select period of period below ->Fill the application with required details.

On filing online, take print out of copies & supporting documents & submit to range officer with covering letter.

Pls call me 7353460192 or mail me to ncaprakash @ gmail.com

Sahil Jain (FAFD, DISA, CA)

Practicing Chartered Accountant

1307 Points Posted on 29 March 2019

Yes, you can claim the refund by making application

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 29 March 2019

Dear Guys.,

Please see the query... He ask refund against paid under rcm...!

Sahil Jain (FAFD, DISA, CA)

Practicing Chartered Accountant

1307 Points Posted on 29 March 2019

Dear Mr Raja
Here he has paid IGST while making import under Reverse charge mechanism, and later the same has been exported without payment of tax (SEZ) sale.
So he is asking whether he can get refund of IGST paid while making import under Reverse charge mechanism, and hence we have answer the query that he can claim refund of the IGST that he had paid.
Please correct me if I'm wrong