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

Client Queries ITC Refund of 86,000 Amid Formula Confusion; Respondent Highlights Potential Error in Figures A client with an Input Tax Credit (ITC) balance of 27,00,000 and export sales of 1,06,000 questions whether they can claim an ITC refund of 86,000 based on a specific formula. The formula used is ITC multiplied by export turnover divided by total turnover of 33,00,000. The respondent advises that there might be an error in the figures or question and clarifies that the refund process is not linked to closing stock ITC. The refund amount should be debited to the Electronic Credit Ledger automatically upon filing the refund application.