Refund against Advance License

[Guest]

Dear Sir,

We claim refund under inverted duty structure.

We reduce it by Input service, and Capital goods.

Questions is,

To reduce further above amount by, filling refund application separately for purchases made against,

1. Export with payment of GST

2. Export without payment of GST

Thanking You

[YAGAY andSUN]

In our view, if you had paid IGST while importing of goods after utilization of Advance Authorization, then, only you can export of F.G. on payment of IGST, otherwise not. it is now settled legal position.

[Guest]

Sir,

Purchase 12%

Sale 18% and 12%

For 12% Sale we go for inverted.

For export without gst, we go for proportionate itc refund.

Question is for export with gst, we get refund from icegate of igst. Additionaly, can we claim purchases made against advance license local gst charged. Or that is available only when export is without gst?

[YAGAY andSUN]

Refund on inverted duty structure but on what basis you will file application for refund.

[Venkataprasad Pasupuleti]

If you are making purchase without GST under Advance authorization in terms of Notification No. Notification No. 48/2017-CT dated 18.10.2017 (for domestic procurements) & Notification No. 79/2017-Customs dated 13.10.2017 (imports), the option of making exports with IGST is not available. Either you can make exports under LUT or forego GST exemption against advance authorisation.

Read more at https://www.taxtmi.com/article/detailed?id=9033

[YAGAY andSUN]

We do agree with the reply as submitted by the Expert.

AI Summary

Refund on inverted duty structure depends on whether inputs were procured under GST or exempt advance authorization, affecting IGST refund eligibility. Where imports were made with payment of IGST after utilizing Advance Authorization, exporters may export on payment of IGST and claim IGST refunds via customs; procurements made without GST under Advance Authorization preclude electing the IGST export route, requiring either export under LUT or forfeiture of the exemption, while exports without GST permit proportionate input tax credit refunds for taxable inputs and services.