https://www.taxtmi.com/forum/issue?id=120553 Reversal of capital goods ITC in GSTR-3B produced negative Net ITC and triggered refund rejection for an exporter under LUT; parties argue that capital goods and blocked credits are excluded from the statutory Net ITC for refund purposes. Commentators recommend filing an appeal challenging inclusion of the reversal in refund computation as the safer route, caution against reclaiming the reversed credit in a later month due to double-claim and mismatch risks, and note the department may treat Net ITC as amounts actually entered in the electronic credit ledger. en-us Wed, 15 Oct 2025 15:32:50 +0530 Fri, 17 Oct 2025 18:13:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120553 Reversal of capital goods ITC in GSTR-3B produced negative Net ITC and triggered refund rejection for an exporter under LUT; parties argue that capital goods and blocked credits are excluded from the statutory Net ITC for refund purposes. Commentators recommend filing an appeal challenging inclusion of the reversal in refund computation as the safer route, caution against reclaiming the reversed credit in a later month due to double-claim and mismatch risks, and note the department may treat Net ITC as amounts actually entered in the electronic credit ledger. Discussion-Forum GST Wed, 15 Oct 2025 15:32:50 +0530 https://www.taxtmi.com/forum/issue?id=120553