Net ITC for Refund of accumulated ITC

[Narendra Soni]

Dear experts,

Kindly suggest whether ITC of Trans-1 (filed in July 17) will also be added for calculating Net ITC required in formula of Refund of accumulated ITC of export under LUT. We will revise the Trans-1 in December also,

Further, whether Advances received and debit notes will also be added for calculating Total Turnover of the relevant tax period.

AI Summary

Clarification on Trans-1 ITC and Turnover Calculation for GST Refunds on Exports under LUT Explained A user inquired about whether the Input Tax Credit (ITC) from Trans-1, filed in July 2017, should be included in the calculation of Net ITC for refund purposes under the Goods and Services Tax (GST) for exports under Letter of Undertaking (LUT). Additionally, the user asked if advances received and debit notes should be included in the total turnover calculation for the relevant tax period. One respondent clarified that Trans-1 can only be revised once and its balance can be used for IGST payments on exports. Another respondent noted that the existing provisions do not include Trans-1 credit in the Net ITC calculation for refund claims.