TaxTMI 
TaxTMI 
Refund of ITC in case of Export with payment of Tax
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....efund of ITC in case of Export with payment of Tax<br> Query (Issue) Started By: - abhishek Mittal Dated:- 23-5-2023 Last Reply Date:- 28-5-2023 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>ITC availed on Goods Purchase 1 Lakh ITC availed on services used 0.5 lakh Total ITC availed 1.5 lakh 100% export with payment of tax ITC used while filing GST Return 1.2 lakh Now how to get 0.3....
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.... lakh ITC Refund. Can refund be applied in this case, if yes, how. Kindly advise? Reply By Amit Agrawal: The Reply: Section 54 (3) of the CGST Act, 2017 reads as follows: "Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period: Provided that no refund of unutilised input tax credit shall be allow....
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....ed in cases other than-- (i) zero rated supplies made without payment of tax; (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council: Provided further that ....
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....no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: 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." Accordingly, you cannot claim refund o....
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....f unutilised ITC in given situation. You need to utilise it for future outward liability (i.e. against domestic supply and / or by exporting goods / services with payment of taxes and then, claiming refund of taxes so paid). These are ex facie views of mine, the same should not be construed as professional advice / suggestion. Reply By Padmanathan Kollengode: The Reply: I agree with views share....
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....d by Ld. Amit Ji. As per Sec. 54(8)(a), the refund of only the tax paid on export of goods or services or both or on inputs or input services used in making such export shall be available. Unutilized ITC can not be claimed as refund and such ITC can be only utilized for future transactions. Reply By Shilpi Jain: The Reply: If this is the limitation that you have then you must consider exportin....
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....g under LuT. Here the timing of purchase and sale will have to be handled carefully to ensure that full credit refund in obtained.<br> Discussion Forum - Knowledge Sharing ....