Sir,
We are the exporter without payment of duty (against LUT). We are availing draw back with lower rate against each export shipment. Now my question is since our local sales volume is very low, the output tax liability is limited and as a result ITC is accumulated in the Electronic Credit Ledger. We were filed GSTR 3B till October 2017 alongwith making payment of ITC on RCM also.
My question is whether we can claim for refund of credit balances lying in Electronic Credit Ledger in view of claiming drawback with lower rate (i.e 1 to 2%) through RFD-1A ?
regards
Exporter Can Claim ITC Refund on Exports per Section 54(3) CGST 2017; Drawbacks Don't Hinder Claim Process An exporter inquired about claiming a refund for accumulated Input Tax Credit (ITC) in their Electronic Credit Ledger, given their low local sales volume and the receipt of lower rate drawbacks on exports. Respondents advised that the exporter could claim a refund for accumulated ITC due to exports, as drawbacks do not impede this claim. They suggested referring to Section 54(3) of the CGST 2017 and a specific GST circular for guidance. Additionally, it was recommended to consider exporting with IGST payment and claiming a refund for a more straightforward process. (AI Summary)
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