Goods And Service Tax - Refund for export of goods without payment of tax

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my client has ITC ledger balance of ₹ 36,58,471/- pertaining to F.Y. 2017-18. He has claimed refund for the period July-December 2017 as below:

Turnover of Zero rated sales/Adjusted Turnover*Net ITC

1,06,379/33,12,748 * 27,85,461 = 89,447/-

During the above period, the ITC was huge,however, proportionate Zero rated sales was very low.The sale pertaining to the ITC mentioned above was made during Febuary 2018.

Therefore, now we are filing refund for Jan-Mar 2018 as follows:

2,32,54,500/2,98,10,877*4,68,759 = ₹ 3,65,664/-

We are unable to claim refund of ₹ 22,00,000/- (approx) in the above case as the Net ITC for the period Jan - March 2018 comes to ₹ 4,68,759/- only and the carry forward of balance pertaining to July-Dec 2017 doesn't get reflected.

Please let us know the possibilities for claiming the ITC.

Thanks in advance.

AI Summary

Client Seeks GST Refund for Exports; Faces Challenges Due to Low Zero-Rated Sales; Experts Suggest Strategic Claims A client sought advice on claiming a GST refund for exports made without tax payment, with an ITC ledger balance of 36,58,471 for FY 2017-18. The client faced difficulties claiming a refund of approximately 22,00,000 due to low zero-rated sales during Jan-Mar 2018. Experts suggested strategies such as claiming refunds under the inverted tax structure, consolidating refund claims for Oct 2017 to Mar 2018, and considering legal precedents. They advised filing a claim under the 'Any Other' category with supporting documentation, noting the urgency due to the impending expiration of the two-year claim period.