ABC Ltd procured goods and services and paid the vendors along with applicable GST. Subsequently, ABC Ltd recovered the amount paid (including GST) from its holding company located outside India.
(i) Whether ABC Ltd is eligible to claim ITC on such expenses?
(ii) If the answer to question (i) is yes, can ABC Limited include this ITC while calculating the refund of unutilised ITC for exports?
Input Tax Credit Claimed for Goods Procured from Foreign Holding Company, Export Refund Potential Under Specific Conditions A company procured goods and services, paid GST, and subsequently recovered costs from its foreign holding company. The discussion explores input tax credit (ITC) eligibility and potential refund for exports. Experts confirm ITC can be claimed if procurement is for business purposes and meets statutory conditions. The recovery from the foreign entity does not automatically disqualify ITC, and potential export-related refund may be possible subject to specific regulatory requirements. (AI Summary)
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