TaxTMI 
TaxTMI 
TaxTMI 
GST Accumulated after IGST Refund
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....ST Accumulated after IGST Refund<br> Query (Issue) Started By: - DEEPAK SHARMA Dated:- 6-12-2022 Last Reply Date:- 11-12-2022 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Sir, A RMG manufacturer claiming IGST on every export shipment (@ 5%), his raw material attracts GST @ 12%. however the unit claiming IGST on export from 4 years. due to higher rate of GST on inputs, they are unable ....
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....to set off all ITC on account of IGST on export, as the output rate of GST is lower (5%). Resulting they having much ITC available in their ECL. Please suggest how it can be refunded. Reply By Rajagopalan Ranganathan: The Reply: Sir, In my opinion, you cannot claim a refund of unutilized input credit since you are exporting the goods on payment of IGST. Refund of input tax paid on goods used....
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.... in the manufacture of export goods only when the goods are exported under the letter of undertaking without payment of IGST. Reply By Amit Agrawal: The Reply: I agree with Shri Rajagopalan Ranganathan Ji! Furthermore, refund - on account of duty-inverted structure as allowed under clause (ii) of first proviso to Section 54 (3) of the CGST Act, 2017 - will also be NOT available in given circums....
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....tances due to specific restrictions by way of third proviso to Section 54 (3) which reads as follows: "Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies." So, in my view, refund of unutilized ITC for past 4 years cannot....
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.... be claimed now in given circumstances. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By KASTURI SETHI: The Reply: No hope at all. Only one of the conditions is fulfilled. I agree with both experts. Reply By Shilpi Jain: The Reply: Atleast ensure that the future exports are made without payment of tax and refund of ITC is clai....
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....med. This will ensure future accumulation does not happen at the same rate. Past credits you may have to see if can be used for any other domestic supply liability.<br> Discussion Forum - Knowledge Sharing ....