Clarification on various issue pertaining to GST

Input Tax Credit for deemed exports is treated as non Chapter V credit and excluded from net ITC used for refund computation.

Tax paid on deemed exports is made available as ITC solely to enable portal refund claims but is not ITC under Chapter V and thus not subject to section 17 restrictions or included in 'Net ITC' for refund calculations. The proviso allowing ITC where an employer is legally obliged to provide goods or services applies to the whole clause restricting ITC; 'leasing' therein means only leasing of motor vehicles, vessels and aircraft. Employer perquisites under employment contracts are not supplies for GST. Electronic credit ledger funds may be used only for output tax (excluding reverse charge) and not for interest, penalties or cash refunds; electronic cash ledger funds may be used for tax, interest, penalties and fees.