Clarifications on Inverted Duty Structure Refunds

[Prabhakar Jebakumar]

Respected experts, the goods dealt by me comes under IDS category and I have make exports of Goods without payment of tax. I have to claim refund of unutilized ITC on inverted duty structure and also on account of zero rated exports. I have following doubts.

1. While claiming refunds, whether I need to claim for input invoices belonging to the particular relevant tax period or prior periods also but reflected in GSTR-2B of relevant tax period. Eg. Suppose I file IDS refund for March 2025. Some suppliers filed GSTR-1 for Feb 2025 belatedly so the invoices get reflected in March 2025 2B. Can I include the ITC in Net ITC calculation.

2. Whether I need to reduce turnover related to Zero rated supplies from IDS turnover as I have claimed refunds under zero rated category also. Including zero rated turnover in IDS refund calculation makes double benefit/refund

3. If I make exports with payment of tax and got refunds from custom department based on Shipping bills, whether I am eligible to refunds under zero rated and IDS category

4. IGST paid while importing inputs are also eligible to be included in Net ITC

5. Kindly clarify my doubts. will be grateful.

AI Summary

GST IDS refund rules: include GSTR-2B ITC even if supplier filed late; exclude zero-rated exports; no double claim For IDS refunds, ITC reflected in the refund-period GSTR-2B may be included even if supplier's return was filed late; zero-rated (export) turnover must be excluded from the IDS refund working because exports have a separate refund route; IGST paid on exports precludes claiming IDS refund for that exported value; IGST on imports of inputs may be included in Net ITC. The same ITC cannot be used simultaneously for zero-rated and IDS refunds in the same tax period, and capital goods' ITC is generally excluded from ITC refunds; one reply noted a judicial decision suggesting zero-rated refunds need not bar IDS claims, indicating some judicial variance.