Refund of ITC

[ROHIT GOEL]

We have procured services in the month of July on which GST has been paid but export bill has been raised in the month of August and no sale was made in the month of July.

At the time of filing of refund application of ITC for the month of July, refund amount comes out to be zero because of the reason that there was no sale in July.

Is there any solution to claim refund of such ITC amount ???

[KASTURI SETHI]

Apply for refund manually to jurisdictional Assistant Commissioner/ Deputy Commissioner, GST Division. I am sure you will get refund.

[CSSANJAY MALHOTRA]

Dear Rohit,

This is one of the major anomaly which has been represented to GST council but nothing favourable has come out so far. As per the formulae prescribed in Refund rules, your eligibility stands at Nil at present.

[Harish Kohli]

Dear Rohit

There will be no use going to Jurisdictional authority as they do not have any procedure of granting refund of IGST on exports.

Also they donot have any procedure laid down by which they can generate scroll(payment) in case of refund of ITC.

My advice to you will be to write to GST council

AI Summary

Refund of input tax credit may be unavailable when exports occur in a later tax period under current refund rules.
Refund of input tax credit is unavailable when GST paid in one tax period relates to exports invoiced in a subsequent period because the refund rules' eligibility formula assesses entitlement against outward supplies in the same period, producing a nil refund; administrative remedies suggested include manual refund application to the jurisdictional Commissioner and representations to the GST Council to remedy procedural gaps for IGST refunds.