Sez refund adjusted turnover

To calculate the Adjusted Total Turnover for your refund application under Rule 89(4) of the CGST Rules, 2017, you must follow the statutory definition.

Definition of Adjusted Total Turnover

As per Rule 89(4)(E), "Adjusted Total Turnover" means the sum total of:

1. The turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services.

2. The turnover of zero-rated supply of services (determined as per the relevant formula).

3. The turnover of non-zero-rated supply of services.

Crucially, you must exclude:

• The value of exempt supplies (other than zero-rated supplies).

• The turnover of supplies in respect of which a refund is claimed under sub-rule (4A) or (4B) (if any).

Application to Your Scenario

Based on the data you provided:

• Sale of FABRIC items to DTA: 33 Lacs

• Sale of COAL to SEZ: 28 Lacs

Calculation steps:

1. Total Turnover in State: This includes your DTA sales (33 Lacs) and your zero-rated supplies to SEZ (28 Lacs).

2. Exclusions:

   • If the "FABRIC" or "COAL" items sold are considered exempt supplies under GST, their value must be excluded from the turnover.

   • If your sale to SEZ is considered a zero-rated supply, it remains in the total (as zero-rated supplies are specifically included in the definition).

   • If you have any service income, it should be excluded from the "turnover in state" portion and added back based on the specific rules for zero-rated and non-zero-rated services.

Formula Summary:

Note: Since you mentioned "Sale of COAL ONLY to SEZ," if this supply is treated as a zero-rated supply (which is common for supplies to SEZ units), the 28 Lacs should be included in the Adjusted Total Turnover. If the Fabric sale to DTA is a taxable supply, it is also included.

Recommendation: Verify the "exempt" status of your goods. If both coal and fabric are taxable supplies, your Adjusted Total Turnover would effectively be the sum of both (33 + 28 = 61 Lacs), provided there are no other adjustments (like services or specifically excluded refunds) required.

Summary

To calculate your Adjusted Total Turnover, sum your total taxable supplies (DTA + SEZ) and exclude any exempt supplies (other than zero-rated ones). For your specific case, if both Fabric and Coal are taxable supplies, your Adjusted Total Turnover is 61 Lacs.

Understanding GST Refund Formula

This video provides a clear explanation of how to adjust your turnover figures correctly to ensure your refund claim is accurate.