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ITC refund on export of goods
Bank charges GST for transaction and on fees for accounts like cash credit and OD facility. GST consolidated invoice is provided by bank and ITC of the same I'd reflecting in my GSTR-2B.Now while I'm applying refund can I claim those bank charges also. ?? sometimes the claim is getting rejected for including bank charges. kindly help
Replies (4)
As per the Formula prescribed in Rule 89 of CGST Act
Refund = (Zero rate supply of Goods + Zero Rated Supply of Service) X NET ITC ÷ adjusted Total Turnover.
NET ITC has been defined under rule 89(4) , means Input Tax Credit availed on Input & input Services during the relevant period. (Capital goods are not included)
Thus as per the definition of NET ITC the ITC for services can be included, hence the refund for ITC paid on bank charges can claim for relevant period.
Note : Refund IDS you cannot claim refund on Inward services & capital goods
Refund = (Zero rate supply of Goods + Zero Rated Supply of Service) X NET ITC ÷ adjusted Total Turnover.
NET ITC has been defined under rule 89(4) , means Input Tax Credit availed on Input & input Services during the relevant period. (Capital goods are not included)
Thus as per the definition of NET ITC the ITC for services can be included, hence the refund for ITC paid on bank charges can claim for relevant period.
Note : Refund IDS you cannot claim refund on Inward services & capital goods
Nicely explained Pankaj Rawat sir
Thanks you sir.
Apparently ITC of Bank charges (being Input services) can be added in Net ITC while computing refund of accumulated ITC on account of Exports w/out payment of tax.
To understand the whole process of Exports & Refunds under GST and to ensure the smooth flow of refunds, click on the link below to watch the video : youtu.be/qU0rLgGJViM
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