ITC on incidental expenses incurred for export of exempted goods

[Venkatesh Dhongadi]

A supplier has started export of exempted goods like Rice, Wheat etc. Whether ITC can be claimed on the incidental expenses like Ocean freight, Insurance & Ware house charges. And if ITC is eligible whether refund of ITC can be claimed?

AI Summary

Exporters of Exempted Goods Can Claim Input Tax Credit on Incidental Expenses Under GST Regulations A supplier exporting exempted goods like rice and wheat can claim Input Tax Credit (ITC) on incidental expenses such as ocean freight, insurance, and warehouse charges. Under the GST law, exports are considered zero-rated supplies, allowing ITC on input services. Refund of unutilized ITC is permissible when exports are made without payment of IGST, subject to specific conditions outlined in the IGST Act and CGST Rules.