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

Input Tax Credit on imported capital goods available; refund of IGST on import not permitted; jobwork and fabric rules apply.
Refund of IGST on import of capital goods is not available; taxpayers must claim Input Tax Credit on imported capital goods used for taxable supplies. Capital goods sent for job work permit credit to the principal manufacturer, subject to return within the prescribed period or else treated as supply with tax and interest. For fabric sales under inverted duty structure, an amendment restricts refund for specified fabric categories for supplies received after the cut off and provides that accumulated unutilised input tax credit may lapse; departmental clarification addresses removal of certain restrictions and claimability rules.