TaxTMI 
TaxTMI 
We are exporter,We received MEIS scripts from DGFT as incentive, sold which are transfeble to others,hence we sold these scripts on which GST is exempted.
My query is whether any proportionate ITC is liable to reverse.
Incentive Scripts and Reversal of ITC
02 Feb 2020 
10 Replies 
12349 Views Asked by
Input tax credit reversal: sale of GST exempt export incentive scripts may require proportionate ITC reversal, clarifying CHA charges.
Whether proportionate reversal of input tax credit is required when exporters sell GST exempt transferable export incentive scripts (MEIS/SEIS) is contested: some view the scripts as incentives not supplies and deny reversal, while others assert sale of exempt scripts necessitates proportionate ITC reversal. Separately, GST charged by Customs House Agents for registering or enabling use of scripts raises debate on ITC eligibility - some treat such CHA charges as allowable input services, while others say ITC must be reversed to the extent attributable to the exempt sale; an advance ruling is suggested to settle the issue. (AI Summary)
Whether proportionate reversal of input tax credit is required when exporters sell GST exempt transferable export incentive scripts (MEIS/SEIS) is contested: some view the scripts as incentives not supplies and deny reversal, while others assert sale of exempt scripts necessitates proportionate ITC reversal. Separately, GST charged by Customs House Agents for registering or enabling use of scripts raises debate on ITC eligibility - some treat such CHA charges as allowable input services, while others say ITC must be reversed to the extent attributable to the exempt sale; an advance ruling is suggested to settle the issue. (AI Summary)