Regarding gst refund

[SRAVANI ASUPALLI]

Can we make claim for gst refund for capex as we are a 100% export unit in addition to the depreciation that we are claiming.

[KASTURI SETHI]

Pl. elaborate your query.

[KASTURI SETHI]

As per Section 16 (3)CGST Act, 2017 Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961 (43 of 1961), the input tax credit on the said tax component shall not be allowed.

How you expect refund despite claiming depreciation ? Pl. clarify and elaborate.

[PAWAN KUMAR]

please clarify in details. you want to claim refund of GST ITC on capital goods purchased in your 100% EOU unit or something else so as to understand and reply to your point.

AI Summary

Input tax credit restriction prevents refund of GST on capital goods when depreciation claimed on the tax element under income tax. A registered person who has claimed depreciation on the tax component of capital goods under the Income-tax Act cannot claim input tax credit or refund on that same tax component under GST; the tax component is excluded from ITC where depreciation has been claimed, preventing a double benefit.