If I imported goods under advance license on payment of IGST at the time of clearance and input used in export goods, I supplied to EOU unit

[Dinesh kumar]

Can I take refunds of IGST which I paid at the time of import ? 

simultaneously can I take ITC through invoice of supply to EOU.? 

or if I export goods physically then I have to export with LUT OR WHAT? 

i am confused about all these process. 

thanks in advance 

[Sadanand Bulbule]

IGST paid at the time of import is available as Input Tax Credit (ITC) under Section 16 of the CGST Act. Such ITC can either be utilised for payment of GST on outward supplies or claimed as refund if used in zero-rated supplies.

1. Supply to EOU – Supplies made to EOU are notified as deemed exports [Notification No. 48/2017-CT]. Refund can be claimed either by the supplier or the recipient EOU (subject to prescribed documentation and undertakings).

2. Physical export of goods – Exports are zero-rated supplies under Section 16 of the IGST Act.

You may:  Export under LUT/Bond without payment of IGST and claim refund of accumulated ITC, or  Export with payment of IGST (using available ITC) and claim refund of IGST paid through shipping bills.

Thus, you are entitled to ITC/refund of IGST paid at import stage, but double benefit is not permissible. You have to carefully choose between deemed export refund route (for supply to EOU) or zero-rated refund route (for direct export).

[Shilpi Jain]

Yes, you can take ITC and apply for refund on export

[Shilpi Jain]

In case of supply to EOU, take ITC and also apply for refund of GST paid on sale to EOU

AI Summary

Input Tax Credit entitlement: IGST on imported inputs may be utilised or refunded under deemed export or zero-rated export routes. IGST paid on imported inputs is eligible as Input Tax Credit under Section 16 and may be utilised or refunded when used in zero-rated supplies. Supplies to EOU are deemed exports and refunds can be claimed by either supplier or EOU subject to documentation. Physical exports may be made under bond/LUT without IGST payment and refund of accumulated ITC claimed, or with IGST payment and refund claimed via shipping bills. Double recovery for the same input is prohibited and appropriate procedural choice and compliance are required.