GST refunds under rule 89(4B) and 89(4)

[Prabhakar Jebakumar]

Dear all.. I am an exporter of fabrics making zero rated sales without payment of tax. I have made export of goods under Advance Authorisation and normal exports with LUT. I have utilised common inputs and input services to export normally and also under AA. I have filed refund under 89(4B) for the exports made with advance authorisation with the formula prescribed under rule 89(4). Also, I have applied proportionate refund for exports under LUT for the common inputs. Can I claim refund of the common input tax credits both under rule 89(4B) and 89(4). As common credits are used, I have included the same ITC availed for refunds u/r 89(4B) in the net ITC calculation for refunds u/r 89(4) also.. Eg. I have ITC of Rs 1lakh related to input. The same Input is used in both normal exports and exports under AA scheme.. hence I have applied refund both u/r 89(4B) and 89(4) by including RS. 1lakh in net ITC calculation as it is a common input . Is it right as rule 89(4) says ITC availed for refunds u/r 89(4) should be excluded from net ITC calculation.. Or I should fully exclude the ITC availed for refund in 89(4B) for net ITC calculation u/r 89(4).Kindly clarify.. Thanks in advance.

AI Summary

GST Refund Claims: Exclude Advance Authorisation ITC from Net ITC Calculation Under Rule 89(4) for Accurate Refunds An exporter inquired about claiming GST refunds under rules 89(4B) and 89(4) for common input tax credits (ITC) used in both normal exports and exports under Advance Authorisation (AA). The exporter included the same ITC in the net ITC calculation for both refund claims. Responses advised that ITC related to purchases under AA should be excluded from net ITC calculations for refunds under rule 89(4). It was clarified that refunds for zero-rated supplies and AA exports are separate, and claiming one does not disqualify the other. The discussion emphasized proper allocation of ITC for accurate refund claims.