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.

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.