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 GSTR2B of relevant tax period. Eg. Suppose I  file IDS refund for March 2025. Some suppliers filed GSTR1 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

Clarifying refund rules for unutilized ITC under inverted duty structure, GSTR-2B timing, IDS turnover, IGST on imports A taxpayer dealing in goods under an inverted duty structure seeks clarification on claiming refunds of unutilized ITC for IDS and zero-rated exports: (1) whether input invoices from prior periods that appear in the relevant period's GSTR-2B (e.g., late supplier GSTR-1 reflected in March 2025) may be included in the Net ITC for that refund; (2) whether turnover of zero-rated supplies must be excluded from IDS turnover to avoid double recovery when separate zero-rated refunds are claimed; (3) whether exporters who paid tax on exports and received customs refunds based on shipping bills remain eligible for IDS or zero-rated refunds; (4) whether IGST paid on imported inputs qualifies for inclusion in Net ITC.