1. WE EXPORTED LEATHER GOODS, GST RATE ON LEATHER IS IS 5%. HOWEVER CHEMICAL USED IN PROCESS IS AT RATE OF 18%. IF I CHARGE IGST ON BILL THEN I ELIGIBLE FOR GST REFUND OF 5%. THEN AGAINST SAME BILL I AM NOT ABLE TO FILE APPLICATION UNDER INVERTED STRUCTURE. IS ANY OPTION AVAILABLE TO FILE REFUND OTHER THEN GOODS EXPORTED UNDER LUT.
2. PLEASE SUGGEST WHILE FILLING REFUND UNDER LUT, GOODS EXPORTED WITHOUT PAYMENT OF TAX. DEPARTMENT DISALLOW CLAIM ON CAPITAL GOODS & SERVICES. DUE THIS HUGE AMOUNT OF CAPITAL BLOCKED. ANY WAY TO GET REFUND OF CAPITAL GOODS/ SERVICES. AS ASSESSE IS FILLING REFUND EVERY MONTH & EVERY MONTH INPUT IS EXCESS THAN OUTPUT LIAB. ANY SUGGESTION.
Query on GST Refunds for Exported Leather Goods: Exploring LUT Option and Inverted Duty Structure Challenges. An individual raised a query regarding GST refunds on exported leather goods, where the GST rate on leather is 5% but the chemicals used have an 18% rate. They face issues filing for refunds under an inverted duty structure and seek alternatives. One response suggests using the LUT option for refund eligibility on inputs and services, and contesting ITC on capital goods. Another advises that refunds under the inverted duty structure are possible even with IGST payments post-September 2017. A third response questions the presence of an inverted duty structure, suggesting a misunderstanding of the query. (AI Summary)
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