Refund of accumulated ITC

[Kaustubh Karandikar]

XYZ importing goods against ‘Advance Authorization’. They had also fulfilled export obligation against the same by exporting the goods without payment of GST under LUT. They are now filing refund claim of accumulated ITC on account of continuous exports. Can they consider the value of exports made for fulfilment of export obligation against advance authorization, while claiming refund of accumulated ITC?

[Rajagopalan Ranganathan]

Sir,

For claiming the accumulated credit due to continuous export there is no question of verifying value of exported goods. Only thing required you have to produce the proof export and bank realization certificate.

[KASTURI SETHI]

Q. Can they consider the value of exports made for fulfilment of export obligation against advance authorization, while claiming refund of accumulated ITC?

Sir, Answer is NO. Disallowed by the department against such export..

[Adarsh Sharma]

XYZ had imported under AA and Exported under LUT and intended to claim the refund under Rule 89, XYZ can consider the value of Export for Refund under Rule 89 on which is also considered as value of export for the purpose of DGFT (fulfillment of AA obligation)

If XYZ is imported under AA he can not Export under Rule 96 (on payment of IGST), there is a restriction to claim the refund under Rule 96 (10)

In my view XYZ can claim accumulated ITC as refund under Rule 89.

AI Summary

Refund of accumulated ITC for continuous exports depends on export proof and applicable refund route under relevant rules. Refund of accumulated ITC for continuous exports under Advance Authorization depends on whether exports made under LUT to fulfil Advance Authorization obligations can be treated for accumulated ITC refund. One position requires only export proof and bank realization certificate for refund; another contends such exports are disallowed by the department. An alternative view is that accumulated ITC can be claimed under Rule 89, whereas exports cannot be routed via the paid-tax refund route under Rule 96 when goods were imported under Advance Authorization.