GST REFUND

[Suraj Bajaj]

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.

AI Summary

GST refund restriction on simultaneous inverted-ITC and IGST export claims; LUT exports allow input and service refunds.
Section 54(3) restricts simultaneous refund claims of inverted duty ITC and refunds for exports made on payment of IGST; exporting under Letter of Undertaking allows refunds of input tax credit on inputs and input services and permits contesting ITC on capital goods, while procurement under advance authorisation or EPCG can prevent further ITC accumulation.