refund of accumulated ITC in case of export.

[bk r]

The client is engaged in manufacturing of goods and clear the goods in domestic market and as well as export . the party get the advance authorisation licence and get the goods imported without BCD,SAD, CVD, Cess etc before the GST regime. The Export was made in the month of July 2017 under advance authorisation scheme . the party has also manufactured and cleared the goods in domestic market and also availed ITC in respect of goods purchased during the month of JULY 2017 in their manufacturing unit. whether the party can claim refund of unclaimed ITC for the period of JULY 2017 in case they exported the goods under advance authorisation licence .The goods under advance authorisation were imported prior to GST regime and the same were used for manufacturing of goods which were export in the month of July 2017.

[KASTURI SETHI]

Yes. Refund of accumulated ITC can be claimed.

[YAGAY andSUN]

This matter is not free from doubts due to flaw in the language used in the relevant notification. Better to seek advance ruling.

[KASTURI SETHI]

Agreed with M/s.YAGAY AND SONS. If the querist applies for Advances Ruling, he will win.

AI Summary

Refund of accumulated ITC may be available for exports under advance authorisation despite notification ambiguity; consider advance ruling. Refund of accumulated Input Tax Credit (ITC) for goods exported under an advance authorisation can be claimed, but ambiguity in the notification language raises doubts; obtaining an advance ruling is recommended to resolve the interpretive uncertainty.