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.

[Nash Industries I Pvt Ltd]

TRAN-1 can be revised only once.

since you had already filed Tran-1, the cenvat balance as of 30.06.2017 is already transferred. If the balance is still available for utilisation, then it can be utilised for payment of IGST on exports

[CSSANJAY MALHOTRA]

NET ITC is for relevant period for which the refund claim is filed.

The same does not include TRANS-1 credit as per the existing provisions. The matter has been taken up, but none seems to be positive in this.

AI Summary

Net ITC for refund excludes TRANS 1 credit; available cenvat balance may be utilised for IGST on exports.
Net ITC for refund of accumulated ITC is determined for the relevant tax period and does not include TRANS 1 credit under existing provisions. TRANS 1 can be revised only once; where TRANS 1 was filed and the cenvat balance as of the cut off date transferred, any remaining unutilised cenvat balance may be used to pay IGST on exports. Total Turnover for the refund period should follow period specific rules, with TRANS 1 credits ordinarily excluded.