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.

[DR.MARIAPPAN GOVINDARAJAN]

Petrol does not come under the purview of GST. Hence refund may not be there. Views of experts solicited.

[KASTURI SETHI]

Refund is allowed on account of exempted goods exported. Go through para no.49 of Board's Circular No.125/44/2019-GST dated 18.11.19.

 

[DR.MARIAPPAN GOVINDARAJAN]

Thanks Sethi Sir for your clarifications.

[Ganeshan Kalyani]

I too agree with the views of Sri Kasturi Sir. Refund of unutilised input tax credit is allowed even on exempted goods. And, exempt goods includes non-taxable supply.

AI Summary

Refund of unutilised input tax credit on exempted or non taxable exports may be claimed, subject to GST status of the goods. Refund of unutilised input tax credit is available for exports of goods characterised as exempted or non taxable supplies, permitting claim of accumulated ITC when no taxable domestic supplies utilise that credit; however, eligibility depends on the GST status of the specific commodity (for example, goods outside the GST net would not qualify).