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?

AI Summary

GST Refund on Exports: Rule 89(4)(C) Requires Zero-Rated Goods to Exceed 1.5x Domestic Value Under LUT A query was raised regarding a GST refund on exports, specifically whether the department is justified in requesting confirmation that the value of zero-rated supply of goods is 1.5 times the value of similar domestically supplied goods. The first response clarified that this requirement is outlined in rule 89(4)(C) of the CGST Rules and applies to exports under a Letter of Undertaking (LUT), not for exports with tax payment. The second response concurred with the first, acknowledging the expertise and knowledge shared.