ITC refund on export of Non taxable supply

[Archna Gupta]

Dear Sir

If we are exporting petrol and there is no domestic supply of any product, in that case we can claim refund of ITC because in case of export of exempted supply (which includes non taxable supply), ITC would be available or as in my case there is no domestic supply we can claim of refund of ITC. Please suggest how can we claim refund in this case.

AI Summary

Eligibility for ITC Refunds on Exporting Non-Taxable Petrol Under GST: Circular Confirms Permissibility for Exempt Goods An individual inquired about claiming an Input Tax Credit (ITC) refund on the export of petrol, which is a non-taxable supply under GST, with no domestic supply involved. One respondent noted that petrol is not covered under GST, implying refunds might not apply. Another respondent referenced a specific circular indicating that refunds are allowed for exempted goods exported, including non-taxable supplies. A third respondent agreed with this interpretation, confirming that refunds for unutilized ITC are permissible for exempt goods, which encompass non-taxable supplies. The discussion centered on clarifying the eligibility for ITC refunds in this context.