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ITC Refund for Export of services

RAMLAKHAN SHARMA (5 Points)

14 March 2025

Respected sir,

we Exporter of services outside India as well as domestic
supply of service,name of service Design & Engineering.

we have unutilised input tax credit, In this regard please seeking you advise for filing refund claim on exports of services for ITC praportionate basis or those input used for providing services are allowed for refund.
Regards,
R.Sharma

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7582 Points)
Replied 14 March 2025

As an exporter of services, you're eligible to claim a refund of unutilized input tax credit (ITC). Here's guidance on filing a refund claim: Refund Claim Options: You have two options to claim a refund: 1. *Option 1: Claim refund of unutilized ITC on a proportionate basis*: - Calculate the proportion of unutilized ITC attributable to export services using the formula: (Export turnover of services / Total turnover) × Unutilized ITC - File the refund claim under Rule 89(4) of the CGST Rules, 2017. 2. *Option 2: Claim refund of ITC on inputs used for providing export services*: - Identify the inputs specifically used for providing export services. - Calculate the ITC attributable to these inputs. - File the refund claim under Rule 89(2)(c) of the CGST Rules, 2017. Documents and Information Required: To file a refund claim, you'll need: 1. *GSTR-3B and GSTR-1*: Ensure these returns are filed and reflect the correct ITC and export turnover. 2. *Table 6A of GSTR-1*: Report the export turnover and ITC claimed. 3. *Refund Application Form RFD-01*: Submit this form along with the required documents. 4. *Supporting Documents*: Attach documents, such as invoices, bank statements, and certificates of export. Additional Considerations: 1. *Time Limit*: File the refund claim within the prescribed time limit (usually 2 years from the date of export). 2. *Refund Processing*: The refund claim will be processed by the jurisdictional tax officer. 3. *Interest on Refund*: If the refund is delayed, you may be eligible for interest on the refund amount. Consult a GST practitioner or chartered accountant to ensure accurate calculation and filing of the refund claim.

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RAMLAKHAN SHARMA (5 Points)
Replied 14 March 2025

Thanks a lot for your Guidline for Exports refund

CA Sachin M Jain (CA | GST | Refunds | Advisory | Litigation) (1363 Points)
Replied 06 May 2025

GST law is drafting with utmost care, the refund formula will itself take care of it.
You need to consider full ITC in NET ITC at the time of computation of refund.

Exports and Refunds under GST:All you need to know

Explained in simple way in this video -
https://youtu.be/qU0rLgGJViM

For more details -
CA Sachin M Jain .8O975. l5447

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