Erroneously refund claimed on capital goods

[suresh sathyamurthy]

While claiming refund on account of export erroneously refund has been claimed on capital input for the period 2017-18,

now during the GST audit error is been found

The company decided to refund the erroneous claim

After repaying the erroneous claim, can the company utilize capital input credit now for its future GST obligation.

If there is restriction in claiming the capital credit now , is it only on account of time bar or any other restriction, kindly clarify

[Himansu Sekhar]

Have you got the refund? The gst audit is by the deptt. Or your internal audit?

[KASTURI SETHI]

Query-wise reply is as under: 1. Yes. The company can re-take credit after re-paying the amount of refund to the Govt. 2. There is no restriction. The re-credit is not hit by time bar limit as the date of taking credit originally/initially will be the relevant date in this case.

[suresh sathyamurthy]

Thanks for the reply

AI Summary

Reclaim of input tax credit allowed after repayment of an erroneous refund; re crediting not barred by time limits.
After repayment of an erroneously obtained export refund attributable to capital goods input tax credit, the company may re avail the input tax credit for future GST liabilities; re crediting is not barred by time limits and the relevant date for taking credit is the original date on which the credit was initially taken.