Refund of ITC in case of Export with payment of Tax

[abhishek Mittal]

ITC availed on Goods Purchase 1 Lakh

ITC availed on services used 0.5 lakh

Total ITC availed 1.5 lakh

100% export with payment of tax

ITC used while filing GST Return 1.2 lakh

Now how to get 0.3 lakh ITC Refund. Can refund be applied in this case, if yes, how.

Kindly advise?

AI Summary

Refund Denied for Unutilized ITC on Exports with Tax Payment Under Section 54(3) of CGST Act 2017 A participant in a discussion forum inquired about obtaining a refund for unutilized Input Tax Credit (ITC) of 0.3 lakh after using 1.2 lakh ITC on exports with tax payment. Respondents clarified that under Section 54(3) of the CGST Act, 2017, refunds for unutilized ITC are not allowed in this scenario. Instead, the ITC should be used for future tax liabilities. One suggestion was to consider exporting under a Letter of Undertaking (LuT) to manage timing of purchases and sales for optimal credit utilization.