Quary Regarding ITC

One of My Client Doing Raw cotton Trading, Raw Cotton Ginning and Pressing Business. He Makes Inter State, Intra State and Deemed Export Outward Supplies. Once He Purchased Lint with Rate of 5% and Made Deemed Exports with 0.10%. Weather My Client Can avail Full ITC or Will Apply Refund for 4.90% or Reverse the 4.90%. Pls Clarify Me.
Replies (2)
Quick Summary
A business involved in raw cotton trading, ginning, and pressing faces a query regarding Input Tax Credit (ITC) on outward supplies. The client purchased lint at a 5% GST rate and made deemed exports at 0.10%. The core question is whether the client can claim the full ITC, apply for a refund of the 4.90% difference, or if they need to reverse this amount. Two potential options are presented: claiming a refund of ITC without paying outward GST, or paying outward GST and then claiming the entire outward tax as a refund, though both involve significant documentation and practical challenges.

Two options are available
first- without paying Outward GST, can take refund of ITC
second- pay GST on outward supplies and then take entire outward tax as refund
But lot of documentation to fullfill. practicle difficulties. in future avoid taking benefit of this notification of deemed export

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