Refund on zero rated supply

[Sudhir Kumar]

I have received input for making final goods to export. On such inputs I have paid IGST worth of Rs, 50 lacs approx. The gross invoice value of inputs are more than 4 crore Rs.

After preparing final goods, I have issued an Invoice of such goods for export. The outward supply invoice value is approx 2.12 Crore.After completing all the procedures for export ane exportation of goods, I filled RFD-1 to the department claiming refund of ₹ 50 lacs as I paid IGST on inward supply.

Department's view is, because the amount if ITC is not reflecting in ledger they are unable to process the refund, further they also said that the amount of refund claim is higher than the the invoice value of exported goods.

Please guide what we have to do further and what are the procedures for filing a refund in case of zero rated supply.

AI Summary

GST Refund Denied: Discrepancies in ITC Ledger and Excess Refund Over Export Invoice Value Challenge Zero-Rated Supplies Claim A user inquired about claiming a refund on zero-rated supplies under the Goods and Services Tax (GST) system. They paid 50 lakhs in IGST on inputs for goods exported with an invoice value of 2.12 crore. The department denied the refund due to discrepancies in the ITC ledger and because the refund amount exceeded the export invoice value. Respondents advised ensuring the input tax credit (ITC) is claimed in returns, checking that invoices are reflected in GSTR 2A, and clarifying the department's stance in writing, as the law doesn't require a direct correlation between refund claims and export invoice values.