Merchant Export by a manufacturer

Dear Sir

For a Merchant Export transaction, we charged IGST @ 0.1% & claimed regular ITC @ 18% on our Inputs.

So, do we need to Reverse the proportionate ITC ? or can we set off the excess ITC with our liability of other Regular Outward supplies  ?

Thanks !

Replies (2)
Quick Summary
A manufacturer is seeking clarification on GST implications for merchant exports. They charged IGST at 0.1% and claimed full ITC at 18% on inputs. The core question is whether they must reverse the proportionate ITC or if the excess ITC can be offset against liabilities from other regular outward supplies. Advice suggests exploring a refund application if ITC was paid on export goods, contingent on GSTR 2A/2B reconciliation and valid LUT.

Dear All,

Please see below query & look forward to your valuable comments.

 

U have already been claimed itc on ur export goods , may u can file a refund application ,but to do it ,u may confirm that, u have paid ur itc liability on that export goods as per gstr 2A or 2B and ur LUT exist on which export by this time.

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