Refund of unutilised ITC

[Archna Gupta]

Please clarify with reference of relevant section and rule that can we claim refund of unutilised ITC on capital goods in case of 100% zero rated supply.

[KASTURI SETHI]

This issue has already been discussed in this forum. Pl. go through replies posted by experts in November and December,2017.

[Archna Gupta]

Sethi Sir, not able to find about Capital Goods

[KASTURI SETHI]

Duty paid (GST) character/status is the same whether it is input or capital goods.

[KASTURI SETHI]

In GST regime the term ,"Input Tax" also includes capital goods. This prespective is worth to be analysed. Present definition of input/capital goods is different from the earlier one existed during pre -GST era.

[CSSANJAY MALHOTRA]

No such provision of refund of accumulated credit on capital goods. Refund of input and input service is available. Refer CGSTRule 89 preferable Net ITC availed formulae.

[KASTURI SETHI]

Sh.CS Sanjay Malhotra Ji,. Sir, thanks for your stamp of clarification and hence enrichment of my knowledge.

[subramanian vijayakumar]

I endorse Sanjay sir views

AI Summary

Input Tax Credit on capital goods may be claimed in principle, but refund eligibility depends on refund rules and net ITC computation. Query concerns entitlement to refund of unutilised Input Tax Credit on capital goods for zero-rated supplies, with some contributors asserting capital goods are included within input tax credit as duty paid shares the same character as inputs, while others state there is no specific provision for refund of accumulated credit on capital goods and direct attention to the CGST Rule 89 net ITC computation for refund assessment.