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Refund of itc under gst

karthika (GST consultant) (51 Points)

07 May 2018

i am merchant exporter exporting salt (Nil rated). i have exported without lut/Bond but on payment of GST (here i exported the salt on paying 0% of tax). I want to claim refund for ITC. I know that the GST system won't allow me to take refund but is there any possible way that i can claim refund of ITC.

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7 Replies

john legend (376 Points)
Replied 07 May 2018

if u have exported without payment of tax if you are giving 0 tax on govt why are you taking input if u dont have outward tax liability this is first basic rule

it is difficult to get refund in this case coz no logic u can only adjust it with outward tax liability if u sale in india

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 07 May 2018

Yes mam you can claim refund of ITC. You have to file application of refund in Form RFD-01 stating details of amount refundable. On submission an acknowledgement will be generated in RFD-02. Submit the application and acknowledgement along with following docs to your respective circle and your refund will be processed in case of no queries. (maximum refunds are processed in 7 working days).

Documents to be submitted:

1. RFD-01 & 02

2. GSTR3B for the months to which exports apply

3. GSTR1 for the months to which exports apply (the value of sales reported in 3B must match with invoices shown in GSTR1)

4. Copy of Export invoices along with shipping documents (value of both has to match)

5. Copy of Purchase invocies for which refund of ITC is claimed (A annexure can be submitted for easy reference and prcessing by officer)

6. Any other details the Officer may request for.

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karthika (GST consultant) (51 Points)
Replied 07 May 2018

Thank you sir for your replies. i know the procedure for claiming refund. but in my case i have an amount of 3.5 lakhs struck in credit legder. i want to get refund but the mistake i made was exporting the goods on payment of tax (0%) i can't even utilise the credit for outward supply. so is there any other way to get refund like by making appeals.

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 07 May 2018

Have you applied for LUT for the financial year for which you have accumulated the ITC atleast on a later date.? If you have, the answer is same. GST council by clarification has stated that "Supply of goods/ services made without payment of IGST under Rule 96A without furnishing of a bond/ LUT to not be denied “export/ deemed export” benefit (Para 4)". So it still means you can apply for refund if you have not made exports under LUT but have applied and received LUT on a later date. Based on circumstances and situations in each case the authority may process the refund (maximum will be processed thats why there was a circular).

Or if you have still not applied for LUT I think you can apply even now for grant of LUT and use the same for applying refund.