REFUND OF IGST PAID AGAINST IMPORT OF CAPITAL GOODS

[RICHA RICHA]

Sir

We had business for Dyeing & Printing of Textile fabric, now we planning to purchase Digital Printing Machine from Italy, Pls reply below points:

1. Can we refund IGST Paid on imported capital goods.

2. Is there any different cases for IGST Refund like- A.) Inverted Duty Structure or, B.)Zero -Rated Supplies made without payment of tax.

3. In case of Jobwork - refund applicability?

4.In case of Fabric Sale - refund applicability?

AI Summary

Textile Business Seeks IGST Refund Advice; ITC Available for Capital Goods Used in Taxable Supplies; Rule Clarifications Provided A business involved in dyeing and printing textiles seeks advice on refunding IGST paid for importing a digital printing machine from Italy. Responses clarify that while IGST refunds on imported capital goods are not available, businesses can claim Input Tax Credit (ITC) for capital goods used in taxable supplies. ITC is also applicable for capital goods sent for job work, provided they return within three years. For fabric sales, a government amendment allows refund of accumulated ITC on certain fabric categories post-August 1, 2018, while ITC accumulated before that date will lapse.