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.

[Rajagopalan Ranganathan]

Sir,

Since you are paying VAT the product exported by you is not covered by GST Act. Hence you cannot claim refund of input tax credit exclusively used in exporting ENA.

[KARAN VERMA]

Sir, in domestic sale of ENA, if i am selling ENA to pharmeuticals, chemical industry, then i am levying 18% GST, if i am selling ENA to liquor companies, then VAT is charged on sale.

In case of foreign customer who is agent, i do not know for which purpose he has used such ENA.

[Rajagopalan Ranganathan]

Sir,

Initially you have not given full details. If ENA supplied in the taxable territory and cleared for export are of the same quality then claim the refund of input tax credit. However the input tax credit availed on input goods, services etc on ENA supplied to liquor manufacturer is to be reversed since liquor is not under GST Act.

[KASTURI SETHI]

You are not concerned for what purpose foreign customer uses ENA. I support the views of Sh.Ranganathan,Sir.

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.