Availing ITC which was to be refunded.

This query is : Resolved

Neha (Querist)
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09 September 2022 Please guide
Exporter of goods under LUT filed For refund of input tax credit. Refund is not issued to him.
Now he sells Capital Goods and GST payable is met out with ITC lying in electronic cash ledger ( which was to be refunded)
Is this allowed as per the Law.
If not which Section should be referred.

Thanks in advance

CA Altamush Zafar

CA Altamush Zafar (Expert)
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11 September 2022 When you apply for refund the amount of ITC gets deducted for Electronic credit ledger therefore it cannot be used unless it is sent back to the account by the officer on failure of refund.