export refund

[Achin Malhotra]

Dear Sir,

Our client is doing export of exempted goods but He has to pay GST on the logistic services. Please let me know can he claim refund for the GST paid for the logistic services. If yes then what is the procedure. Our client is registered under GST.

[CASusheel Gupta]

Achin

Section 16(2) of IGST specifically allows ITC in case of supply of zero rated exempt supplies.

You can take ITC of logistic services and claim refund

Regards

CA Susheel Gupta

9811004443

[KASTURI SETHI]

-------------- And procedure is laid down in Rule 89 of CGST Rules, 2017 and in Board's Circular appended below:

Refund of IGST for Zero-rated supplies or accumulated ITC - Manual filing and processing of refund claims

Circular No. 17/17/2017-GST, dated 15-11-2017

 

 

[YAGAY andSUN]

Refund would be available as per the prescribed procedure.

AI Summary

Input tax credit for zero-rated supplies enables recovery of GST on logistics through the prescribed refund process. Exporters of exempted goods who pay GST on logistics can take input tax credit for those services because the exports qualify as zero-rated supplies; they may claim refund of the accumulated ITC. Claimants must follow the prescribed GST refund procedure, complying with the applicable refund filing, documentation and processing requirements set out in the refund rules and administrative circulars.