https://www.taxtmi.com/forum/issue?id=117069 Exporter sold garments under LUT July-September 2017, claimed full drawback and reversed remaining ITC after domestic sale (used part for domestic sale, reversed balance). Central GST audit objects, urging proportionate ITC apportionment under the CGST Rules. Advisors state drawback pertains to taxes on raw materials and inputs, apportionment provision cited by audit relates to capital goods, and that if reversals already proportionately covered inputs and input services, the objection may not apply; guidance also notes that customs drawback claim does not automatically deny GST credit and refers to GST circulars. en-us Sat, 06 Mar 2021 10:11:23 +0530 Thu, 23 Jan 2025 15:54:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117069 Exporter sold garments under LUT July-September 2017, claimed full drawback and reversed remaining ITC after domestic sale (used part for domestic sale, reversed balance). Central GST audit objects, urging proportionate ITC apportionment under the CGST Rules. Advisors state drawback pertains to taxes on raw materials and inputs, apportionment provision cited by audit relates to capital goods, and that if reversals already proportionately covered inputs and input services, the objection may not apply; guidance also notes that customs drawback claim does not automatically deny GST credit and refers to GST circulars. Discussion-Forum GST Sat, 06 Mar 2021 10:11:23 +0530 https://www.taxtmi.com/forum/issue?id=117069