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 of unutilised input tax credit barred for exports with tax paid; only tax actually paid on exports is refundable.
Refund of unutilised input tax credit is generally barred except for specified cases such as zero-rated supplies made without payment of tax and certain rate-induced accumulations. Refund is available only for the tax paid on exports or on inputs/input services used in making such exports. Unutilised ITC where exports are made with payment of tax cannot be refunded and must be utilised against future outward tax liabilities; exporting under a Letter of Undertaking is a practical alternative to manage credit recovery.