GST refund on exports

[Kaustubh Karandikar]

XYZ applied GST refund on goods supplied on payment of GST. Turnover of zero-rated supply of goods, means, value of zero-rated supply made without payment of tax under LUT or value which is 1.5 times the value of like goods domestically supplied whichever is less. Department wants to confirm that the products for which refund claimed fulfils the criteria of 1.5 times value. Is the department right in asking for this information? If yes under which provisions?

[Shilpi Jain]

This is as per rule 89(4)(C) of the CGST Rules, in the context of refund for export of goods under LUT. Should not be applicable for export with payment of tax.

[KASTURI SETHI]

I agee with Ms.Shilpi Jain, an expert. Actually, her reply has enriched my knowledge.

AI Summary

GST refund verification: department may require zero rated export valuation proof, applicable to LUT refunds not tax-paid exports. The department may request evidence that the turnover of zero rated supplies meets the prescribed valuation threshold when processing refund claims under LUT; the verification procedure for such LUT refunds is governed by Rule 89(4)(C) of the CGST Rules and is not intended to apply to refunds for exports made with payment of tax.