Refund of ITC on account of export of exempted goods

ITC / Input 1600 views 3 replies
I am manufacturer and purchase taxable raw material and take ITC on it. Further, my final product is exempted from gst. i export the exempted goods. can i take refund of accumulated ITC.
Replies (3)
yes...

Yes, you can are eligible for claiming refund of accumulated input tax credit.

GST Provision-

Section 16(2) provides that credit of input tax may be availed for making zero rated supplies (i.e. exports & SEZ) notwithstanding that such supply may be an exempt supply.

Section 16(3) provides that person making zero rated supplies can apply for refund by either of 2 options-

1. Supply without payment of tax and claim refund of accumulated credit.

2. Supply with payment of tax and claim refund of output IGST paid on such supply.

 

thanks


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