Duty Drawback & Input Credit - under GST

[unni kv]

Dear Sir

We are a Man Made Fabrics exporter (95% export) located at Kannur District, Kerala.

We are exporting against Letter of Undertaking without paying GST.

We are availing duty drawback in the lower rate (from 1/7/2017 onwards), earlier

we used to availed duty drawback in the High rate i.e till 30/6/2017.

Could you please clarify my following query

• Whether we are eligible for avail Input Credit for materials purchased ?
• Whether Input Credit can avail for Integrated Tax paid for Import?
• Whether input credit can avail on SGST/CGST paid on Reversal Charge Mechanism?
• We have already filed GSTR3B for July & August 2017 after making payment towards

CGST/SGST on RCM and showed as ITC receivable for tax on purchases/RCM, is this

Correct or else how we can reverse these ITC. We have not any set off against this

ITC receivable.

Your early feedback on my above subject will be highly appreciated.

AI Summary

Eligibility for ITC on Materials Confirmed; No Refund If Duty Drawback Claimed per Section 54(3) CGST Act An exporter of man-made fabrics from Kerala queried about eligibility for Input Tax Credit (ITC) under GST, particularly when exporting against a Letter of Undertaking and availing duty drawback at a lower rate. Responses confirmed eligibility for ITC on materials purchased, Integrated Tax on imports, and SGST/CGST under Reverse Charge Mechanism, provided the output supply is taxable. However, as per Section 54(3) of the CGST Act, no refund of ITC is allowed if duty drawback is claimed. The discussion also addressed procedural correctness in filing GSTR3B and potential reversal of ITC receivable.