ITC on export of ENA

[KARAN VERMA]

Sir

My query is if i am exporting ENA (Spirit) out of india, then whether i am eligible to claim input tax credit on inputs/input services exclusively used in exporting ENA.

Currently, i am paying VAT on domestic sale of ENA.

AI Summary

Eligibility to Claim Input Tax Credit on Exported Extra Neutral Alcohol Explained: ITC Not Available for Liquor Sales A participant in a discussion forum inquired about the eligibility to claim input tax credit (ITC) on inputs used in exporting Extra Neutral Alcohol (ENA) from India. An expert clarified that since VAT is paid on domestic sales, ENA is not covered by the GST Act, and ITC cannot be claimed for exports. Further clarification revealed that if ENA is supplied for export and is of the same quality as domestically sold ENA, ITC can be claimed, except for sales to liquor manufacturers, where ITC must be reversed. Another participant agreed with this interpretation.