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ITC on Sales

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Marimuthu

Manager

387 Points Posted on 01 September 2021

Dear Experts,

1. A registered person is doing the Export sales by submitting the Letter of Undertaking ie without paying the IGST.

2. Can he avail the ITC on his purchase of goods/Raw materials.

3. Please clarify...

Replies (2)

Quick Summary

This discussion clarifies whether a registered person making export sales under a Letter of Undertaking (without paying IGST) is eligible to claim Input Tax Credit (ITC) on their purchased goods and raw materials. The consensus is that exports are zero-rated supplies, allowing the claim of ITC on inputs and even a refund of proportional ITC related to export sales.

Durgesh Vashisth

Financial Consultant

220 Points Posted on 01 September 2021

Dear Mr.Marimuthu

The Export of Goods or Services are Zero-rated supply that way you can avail ITC on the input goods & services, even you can claim a refund of ITC by proportioned to export sales.

Thanks & Regards

Durgesh Vashisth

durgeshvashisth @ gmail.com