28 February 2018
Hello Sir, i am going to apply for Export Refund on GST FORM RFD-01 A under a option of -Refund of ITC on Account of Exports Without Payment of Tax, there is a Formula for calculation of Refund is-[ Turnover of zero rated supply of Goods & servies × Net Input Tax Credit ÷ Adjusted total turnover ] In this Formula, i didn't understand what is "Net Input Tax Credit " ? because the Refund calculation base on this, so please tell me.
28 February 2018
Net ITC has been explained in Rule 89(4) of CGST Rules 2017. Net ITC means input tax credit availed on inputs and input services during the relevant period
Querist :
Anonymous
Querist :
Anonymous
(Querist)
28 February 2018
BUT SIR, IT IS A INPUT TAX CREDIT OF TOTAL PURCHASE IN SUCH RELEVANT PERIOD OR A INPUT TAX PAID ON INPUTS (PURCHASE) WHICH USED FOR EXPORT? THIS IS CONFUSION, PLEASE TELL ME
28 February 2018
Dear, You should be using input tax credit of the total purchase. Thus by using the formula it would calculate the input tax credit attributable to the exports. Hope this helps. Regards.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
28 February 2018
ok.... but sir, suppose in 1 month, there is a Export (zero rated supply) of some amt and No ITC Credit (No any purchase) in that particular month. because export of goods is of previous month stock, In this case as per calculation of that formula, my refund will be 0. ?
Querist :
Anonymous
Querist :
Anonymous
(Querist)
28 February 2018
Please sir, reply me ,solved my query
28 February 2018
Yes. Since in the previous month, ITC of the said purchase would have been included in the "Net ITC" and thereby you are not denied any benefit.
09 May 2018
After calculating maximum refund amount, how would I know the refund amount to be claimed. Should I claim what is calculated or how would I check the refund amount to be claimed. In textile fabric export input are @5% and zero rated export turnover is suppose Rs. 100000, now if maximum refund admissble is calculated (as per fourmula) Rs. 8000, then should I claim Rs. 8000 or Rs. 5000 (i.e. 100000 x 5%)