ITC refund on export of goods

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

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

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

1.WhatsApp : tinyurl.com/wCASMJ 

2. Facebook : tinyurl.com/FCASMJ 

3. Instagram : tinyurl.com/ICASMJ 

4. LinkedIn : tinyurl.com/LCASMJ  

5. YouTube : tinyurl.com/YCASMJ 

6. Twitter : tinyurl.com/TCASMJ 

7. Email : casachinmjain @ gmail.com