Refund of Inverted Duty & Refund of ITC for export under LUT

[Praveen Nair]

Hi All

Can you please confirm whether we can claim Refund of ITC under Inverted Duty Structure and also Refund of ITC for export done under LUT together, for the same financial year.

Currently we are claiming only LUT ITC refunds whereas the ITC due to difference in output and input tax (Inverted duty) is accumulating.

Let me know if more clarity is required.

Thankyou!

AI Summary

Refund of ITC eligibility: separate maintenance permits distinct refund claims under inverted duty and export LUT rules.
The two refund categories-refund of ITC under an inverted duty structure and refund of ITC for exports under LUT-are governed by distinct procedures and formulas; they may be claimed in the same financial year provided the export and inverted-duty transactions and related ITC are separately maintained and separate refund applications are filed. A single transaction cannot support two different refunds simultaneously, though different transactions or periods may be claimed under different provisions. Practical procedural guidance and circulars address formula application where exports occur under LUT.