gst refund

[AFREEN SHAIKH]

can we take refund of IGST paid on export through ITC we export without payment of IGST and we had applied for refund of itc on purchase but our ITC refund got rejected cz it was time barred now that itc is again credited in credit ledger .. now can we charge IGST on export and pay liability through ITC and take refund of IGST ?? if yes ,What all documents are required ?? does officer later on ask GSTR-2A and other documents ?? can he reject refund on the basis that ITC refund was already rejected cz it was time barred?? Thank you

[Alkesh Jani]

Shri

Please give more details such as when was export of goods/services were made (which tax period) and when you filed refund, this details will help our experts to give proper reply.

Moreover, please refer Circular No. 125/2020, 135/2020 and 139/2020 hope this may help to clear your query.

[AFREEN SHAIKH]

CAN I TAKE REFUND FOR IGST PAID THROUGH ITC ON EXPORT.???

I HAD APPLIED FOR ITC REFUND ON EXPORT WITHOUT PAYMENT OF IGST AND IT GOT REJECTED CZ OF TIME BARRED .

SO NOW CAN I CHARGE IGST ON EXPORT AND TAKE REFUND?

[Alkesh Jani]

Shri

I am of the view that you can claim for refund, if the refund is rejected ITC cannot be held as ineligible.

For documents please refer above Circulars.

[Sangeeta Garg]

Yeah, this is the right way. Now the ITC is already in credit ledger so no further eligibility test. In one of our case, we used it for our local sales initially client was 100% export now doing domestic sales.

[Vijay kumar]

There is nothing wrong in claiming refund through payment of IGST on future exports, provided the ITC was otherwise eligible as per law. Earlier rejection of ITC refund claim has nothing to do with this. For procedure to be followed, pl go through Sn.54(1) of CGSTA'17 r/w Rule 96 of CGSTR'17 r/w Circular No.125/44/2019-GST dt. 18.11.2019. Relevant para from the circular is extracted below:

Refund of Integrated Tax paid on Exports

Refund of Integrated Tax paid on Exports

58. The refund of Integrated tax paid on goods exported out of India is governed by rule 96 of the CGST Rules. The shipping bill filed by an exporter is deemed to be an application for refund in such cases, but the same is deemed to have been filed only when the export manifest or export report is filed and the applicant has filed the return in FORM GSTR-3B for the relevant period duly indicating the integrated tax paid on goods exported in Table 3.1(b) of FORM-GSTR-3B. In addition, the exporter is expected to furnish the details of the exported goods in Table 6A of FORM GSTR-1 of the relevant period. Only where the common portal is able to validate the consistency of the details so entered by the applicant, the relevant information regarding the refund claim is forwarded to Customs Systems. Upon receipt of the information from the common portal regarding furnishing of these details, the Customs Systems processes the claim for refund and an amount equal to the Integrated tax paid in respect of such export is electronically credited to the bank account of the applicant.

[Ganeshan Kalyani]

Sri Vijay Kumar Sir , welcome back after 3 years' of time. We were missing your participation in TMI.

[KASTURI SETHI]

Sh.Kalyani Ji,

Yes. Mr.Vijay Kumar's replies are always fool-proof and hence reliable. I am always keen to read his reply with gusto. He is welcome back. Home coming.

AI Summary

IGST refund: exporters may claim refund of IGST paid using eligible ITC despite prior time barred ITC refund rejection.
Exporters may claim refund of IGST paid through Input Tax Credit where the ITC is otherwise eligible; a prior time barred rejection of an ITC refund does not make the ITC ineligible. The statutory refund process requires the shipping bill (deemed refund application) and filing of returns indicating IGST paid, disclosure of exports in the prescribed sales return, portal validation of details and customs processing to electronically credit the refund to the exporter's bank account, in accordance with departmental circular guidance.