Refund of ITC of Expoer of Service without payment of Tax

[Rahul Chachan]

Refund filed for FY 2021-22 with turnover of Rs. 10 lac (5 invoices of Rs. 2 lac each). Collection recd till March 2022 was Rs. 9 lac and balance 1 lac recd in May 2022. In refund application we have mentioned service turnover Rs. 10 lac. In Statement -03, all 5 invoices of Rs. 10 lac are shown with payment recd of Rs. 10 lac in refund applition of FY 2021-22.

Officer raised query in RFD-08, saying turnover is not as per Rule 89(4)(D) and in Statement -03 for FY 2021-22 we have also shown FIRC detail of Rs. 1 lac recd in May 2022.

What detail of turnover and consideration should i mention in Statement -03 of FY 2021-22 ?

Now as i reported wrong details what option do i have ? Although, change in turnover will not make any differene in refund amount of ITC as no other turnover is there.

AI Summary

Refund entitlement for export of services depends on payments received; reply to show cause with receipt based computations.
Refund entitlement for exports of services depends on consideration actually received in the relevant tax period and reporting in Statement 03 must reflect turnover corresponding to payments received in that period. File a formal reply to the show cause notice explaining that only receipts realized in the cited fiscal year underpin the refund claim, and include a comparative refund computation to show that the later receipt does not change the refundable ITC.