GST refund- Adjusted total turnover

[Hariharan Sundaram]

Dear Experts kindly clarify the adjusted total turnover as mentioned under Rule 89(4)(E) as per which,

E) “Adjusted Total Turnover” means the sum total of the value of-

(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2,excluding the turnover of services; and

(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services,

excluding-

(i) the value of exempt supplies other than zero-rated supplies; and

(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any,

during the relevant period

Further as per the definition of turnover in state defined Section 2 (112) of CGST Act, 2017,

“turnover in State” or “turnover in Union territory” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess;

My question is whether the value of inter state supply of Services , has to be included or not in the adjusted total turnover for claiming refund since turnover of services are specifically excluded in the main part of the 'Adjusted total turnover' as per Rule 89(4)(E) of the CGST Rules, 2017? Kindly guide me sirs.

AI Summary

Clarity on GST Refund: Include Zero-Rated and Non-Zero-Rated Service Supplies in Adjusted Total Turnover per Rule 89(4)(E). A participant in a discussion forum inquired about the calculation of 'Adjusted Total Turnover' under Rule 89(4)(E) of the CGST Rules, 2017, specifically questioning whether the value of interstate supply of services should be included for GST refund purposes. The response clarified that according to Rule 89(4)(E)(b), both zero-rated and non-zero-rated supply of services must be considered when calculating 'Adjusted Total Turnover.' The discussion aimed to resolve confusion regarding the inclusion of service turnover in the adjusted total turnover for GST refund claims.