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.

AI Summary

No Refund for Unutilized Input Tax Credit on Capital Goods Under GST for 100% Zero-Rated Supply, per CGST Rule 89. A user inquired about the possibility of claiming a refund for unutilized Input Tax Credit (ITC) on capital goods in the case of 100% zero-rated supply under the Goods and Services Tax (GST). Responses highlighted that the GST regime includes capital goods in the definition of 'Input Tax,' but there is no provision for refunding accumulated credit on capital goods, only on inputs and input services. Reference was made to CGST Rule 89 for further clarification. Participants acknowledged the contributions and clarifications provided by others in the discussion.