GST REFUND FOR ZERO RATED SUPPLY WITHOUT PAYMENT OF TAX

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Per CGST Act  54, a registered unit can claim refund of unutilized input tax credit at the end of the relevant tax period against their zero rated supplies made without payment of tax through GST portal under RFD-01A. While applying for refund, the system indicates the value of ITC available for the relevant period. Need to know whether we have to deduct the amount of ITC utilized to set off the liaibility towards outward supply of goods/services during the relevant period. Those who have knowledge on this may please revert with their inputs.

AI Summary

Refund of Unutilized ITC for Zero-Rated Supplies: Rule 89 Proportional Formula Clarifies Deduction for Domestic Supply ITC. A registered unit can claim a refund of unutilized input tax credit (ITC) for zero-rated supplies made without tax payment through the GST portal using form RFD-01A, as per the CGST Act 54. The query seeks clarification on whether to deduct ITC used to offset liabilities for outward supplies during the relevant period. The response indicates that Rule 89 provides a proportional refund formula, which automatically accounts for ITC related to domestic supply.