ITC refund reconciliation issues arise when Annexure-B line-item details must match GSTR-3B for non-monthly refund periods.
Line-item-wise reporting in Annexure-B for ITC refund requires the ITC availed in GSTR-3B to be furnished with additional detail, even where the net refund claim excludes capital goods ITC, permanent reversal under 4(B)(1), and temporary reversal under 4(B)(2). Monthly refund filings are better suited to matching Annexure-B with GSTR-3B details, while quarterly or half-yearly refund periods may create reconciliation challenges, especially for taxpayers following the reversal-and-reclaim methodology. (AI Summary)

Export refund valuation under GST compares FOB, CIF, and invoice value across ITC and IGST routes
Zero-rated export of goods under GST may be routed either through export without payment of tax under LUT with refund of accumulated input tax credit, or through export with payment of IGST followed by refund on the IGST route. The note compares these mechanisms and states that, for export without payment of tax, refund of input tax credit is linked to the FOB value in the shipping bill, while export with payment of IGST is described as being based on the invoice value, often aligned with CIF value on the commercial invoice. The discussion also refers to section 15 valuation principles and refund guidance under the CGST Rules, stating that export refund is computed with reference to the lower of FOB value or invoice value declared for export. It raises a practical issue on whether, in the IGST route, the GST invoice should mirror FOB value or continue to reflect the higher commercial invoice value for valuation and reconciliation. (AI Summary)