GST Refund_Inverted Duty Refund

[umeshkumar jhawar]

Taxpayer is manufacturer purchased Raw material at 18%.

Sale includes both Domestic sales and Export with Payment of duty at 5%.

We have received refund from custom on account of Export with payment of duty. Now while going for Inverted duty refund, whether Inverted Sale Turnover includes Export with payment of duty which is at 5%.

AI Summary

Inverted duty structure refund under GST excludes export turnover with IGST payment from the refund calculation base.
Inverted duty structure refund under GST is discussed for a manufacturer making domestic supplies and exports with payment of IGST. The main issue is whether export turnover with payment of IGST is included in the turnover used for IDS refund calculations. One view treats export turnover as part of the refund base, while another view, relying on the proviso to section 54(3) of the CGST Act, states that IDS refund is not available on exported supplies where IGST refund is claimed, and only domestic turnover is counted.