Adjusted Total Turnover Computation

[Rakesh Jain]

'My Net ITC is already computed after the deduction as per Rule 42. Now, for refund calculation, am I again required to apply the proportionate formula by including exempted turnover in the adjusted total turnover? Wouldn't that amount to a double deduction?'

AI Summary

Taxpayer challenges proportionate refund formula after Net ITC computation under Rule 42 as potential double deduction A taxpayer questioned whether applying the proportionate formula for refund calculation after already computing Net ITC under Rule 42 constitutes double deduction. One respondent cited Rule 89(4)(E) defining 'Adjusted Total Turnover' as including turnover excluding exempt supplies other than zero-rated supplies. Another respondent acknowledged this as a significant issue arising during refund filing, suggesting taking entire credit in monthly returns, computing Rule 42/43 reversal, then reversing it, so refund calculations use the original ITC amount with proper computation methodology.