Refund of ITC in relation to Export of Goods without payment of tax

[anuja bhandari]

Dealer is in business of trading of Gaur Meal product, this item was taxable @ 5% GST before 15 Nov 2017 in GST. After 15 Nov 2017 vide notification Gaur Meal is at 0% GST. Dealer purchased gaur meal prior to 15 Nov 2017 and exported the same out of India in Dec 2017 without payment of IGST. Can he claim refund of ITC accumulated due to purchase of gaur meal before 15 Nov 2017 under the option of Sec 54 of zero rated supplies made without payment of tax?

Awaiting valuable responses. Thank you.

[Pavan Mahulkar]

Dear Madam,

You can claim refund of ITC accumulated on export of exempted goods.

In your scenario you have to claim it for the period

1/11/17 to 31/12/17

Then only your Net ITC could be calculated in the farmula prescribed in rule 89

[Ganeshan Kalyani]

In my view, you can claim the refund of the input used on the product exported.

AI Summary

Refund of Input Tax Credit available for zero-rated exports made without tax payment, subject to net ITC calculation rules. Accumulated Input Tax Credit attributable to inputs purchased when goods were taxable may be claimed as refund for zero-rated exports made without payment of tax. Claimants must allocate acquisitions and exports to the relevant tax periods and apply the prescribed net ITC calculation procedure for that period to determine the refundable ITC.