SIMULTANEOUS CLAIMS OF REFUND OF GST DUE TO EXPORT UNDER LUT AND INVRETED DUTY STRUCTURE

[KULJIT SINGH]

Is it it possible for a manufacturer making domestic as well as export sales, where inverted duty structure is applicable, to claim simultaneous refund on account of exports under LUT and inverted duty structure or that only one of above can be claimed. If yes whether any specific provision permits so.

AI Summary

Manufacturer Can't Claim GST Refunds for Exports and Inverted Duty Structure on Same Inputs and Capital Goods. A manufacturer engaged in both domestic and export sales under an inverted duty structure inquired about the possibility of claiming simultaneous GST refunds for exports under LUT and the inverted duty structure. The response clarified that a refund can be claimed for tax paid on inputs and capital goods used in manufacturing export goods. However, the same inputs and capital goods cannot be used to claim a refund under the inverted duty structure, as the credit taken is higher than the tax payable on exported goods, and this credit is claimed as a refund due to exports under LUT without IGST payment.