Unutilized input tax credit refund eligibility affirmed for exporters of specified fabrics, excluding capital goods credit. Clarification states that refunds of unutilized input tax credit for manufacturers exporting specified fabrics are allowable despite a notification restricting refunds under clause (ii) of the proviso to subsection (3) of section 54, because that restriction does not apply to zero-rated supplies (exports and SEZ supplies). Subject to subsection (10) of section 54, input tax credit on inputs (excluding capital goods) used to manufacture exported fabrics is eligible for refund; the circular is clarificatory and follows the Central Circular with para materia changes.
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Unutilized input tax credit refund eligibility affirmed for exporters of specified fabrics, excluding capital goods credit.
Clarification states that refunds of unutilized input tax credit for manufacturers exporting specified fabrics are allowable despite a notification restricting refunds under clause (ii) of the proviso to subsection (3) of section 54, because that restriction does not apply to zero-rated supplies (exports and SEZ supplies). Subject to subsection (10) of section 54, input tax credit on inputs (excluding capital goods) used to manufacture exported fabrics is eligible for refund; the circular is clarificatory and follows the Central Circular with para materia changes.
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