22 January 2021
We are merchant exporters with registered office in J&K. we get our goods manufactured in different states in our own label and then exporting directly from the premises of manufacturer . we purchase raw materials locally ( near the site of manufacturing ) and get it delivered at the premises of manufacturer and in the process pay 18% IGST . Shipping bills & all export related documents are in our name . Since the goods we export are zero rated (HSN 230990 ) , we claim refund of ITC paid on input materials . Local Tax authorities are withholding our GST for two years now , primary reason cited is that we have to file ITC-04 . Now i want to understand that as per law , are merchant exporters (traders) supposed to file ITC-04? and if yes , is it mandatory for refund of ITC on exports ? Please note that we have already listed the GST Bills issued by the registered manufacturers ( for Job work ) under purchases in our monthly 3B filings
22 January 2021
So the manufacturers are your job workers. So as a principal manufacturer you have to file ITC04. The refund should not be withheld for this non-compliance but yes the department may insist on its filing.To avoid litigation and get your money you should file ITC04 (if I have understood the facts correctly).Otherwise clarify the facts.
23 January 2021
Mr Lekhraj Sood Thank you for your reply . My queries are : 1. We are not registered manufacturers . We don't own any manufacturing site in our name & are not DIC registered . we are traders (Merchant exporters ) , and as for as i understand "Principal Manufacturers "are supposed to file ITC-04, as we are not manufacturers should we still file ITC-04? 2. We filed in writing that if local Tax department feels we should file ITC-04 ,they should issue us an order in writing towards the same but they haven't officially directed us nor issued any clarification or guidance to us . 3. Earlier two refunds were issued without any sort of insistence on ITC-04 by the same department ,they are insisting now on the same but orally . what is your advise ? Thank you in advance for your support .
CAclubindia
