12 March 2019
We are manufactures of control panels. We have made supplies of panel to merchant exporters at the concessional rate of .01%. Can we claim full ITC on goods purchased for use in manufacture of goods that are supplied to merchant exporters? Thanks and regards
12 March 2019
Yes. You can claim ITC . Since you are supplying at concessional rate , you may not able to utilised full credit . You can claim refund of accumulated inverted duty
You can do so under Section (3) (ii) of CGST Act, 2017 read with rule 89 of the CGST Rules, 2017 and in accordance with CBEC Circular no.24/24/2017-GST dated December 21, 2017.
13 March 2019
Thanks for your reply Ma'am. Please let me know whether the ITC can be adjusted with the output liability of sales in coming months if we do not claim refund? For how long can we carry forward this ITC? If not what is the procedure of claiming refund and what is the time limit for filing refund claim?
CAclubindia
