EXPORT REFUND UNDER GST

[THYAGARAJAN KALYANASUNDARAM]

Dear Sir,

One of my client has ITC balance of ₹ 27,00,000/- . Export sales of ₹ 1,06,000/- and total adjusted turnover for the respective period is ₹ 33,00,000/-.

For the above, i have calculated refund of ₹ 86000/- as per the below formula

ITC * Export Turnover / Total turnover

Now, my doubt is, can i claim ITC of ₹ 86,000 on the Export sales of ₹ 1,06,000/- or should I reduce ITC pertaining to closing stock from this formula.

[Rajendra Prasad]

Dear Mr Thyagarajan,

1. Please check your question and figures . It seems that there is an error either in your question or figures.

2. The refund has no link to the Closing Stock on ITC.

3. The refund amount is to be debited to the Electronic Credit Ledger. (I think it is automatic upon filing refund application)

4. I am giving the link to ICAI Publication on GST Refunds .

https://idtc-icai.s3-ap-southeast-1.amazonaws.com/download/knowledgeShare18-19/E-publication-Refund-under-GST-31.12.18.pdf

5. The following is the link to GST refund process.

http://cbic.gov.in/resources//htdocs-cbec/gst/Refund-Compendium-020719.pdf;jsessionid=69D9A4399665E705B92DF1A49870C5AE

AI Summary

Export refund under GST: entitlement not reduced by closing stock; refund amount is debited to Electronic Credit Ledger. The refund for export under GST, calculated by apportioning Input Tax Credit to export turnover, is not linked to closing stock adjustments; the refundable amount is effected through the Electronic Credit Ledger upon filing the refund application, with procedural guidance available in professional and official GST refund compendia.