ITC REFUND IF EXPORT MADE UNDER ADVANCE LICENCE

This query is : Resolved

RAM KUMAR SAINI (Querist)
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05 December 2019 Greatings for the day

we are manufacturer exporter and need to claim the ITC refund as per circular No. 17/17/2017-GST dt. 15.11.2017

some of our Raw Materials are Imported under Advance Authorization and some are Indigenous on payment of Gst

we import/export under Advance Authorization

can we claim ITC refund on the basis of Export done without payment of duty under Advance Authorization????

can we export on payment of IGST as well as Advance authorization simultaneously

Please advise

Thanks & Rgds

CA Anita Bhadra

CA Anita Bhadra (Expert)
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06 December 2019 Following link may help you to find the correct answer of your query :-

https://www.pwc.in/assets/pdfs/services/tax/indirect_news_alert/2019/pwc_news_alert_13_january_2019_government_removes_pre_import_condition.pdf

RAM KUMAR SAINI

RAM KUMAR SAINI (Querist)
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09 December 2019 Thanks for your attention
This link is only explaining about the

imports under Advance licence with payment of Igst
import under advance licence without payment of igst
import under advance licence after export obgligation or after export of goods under advance licence

my query is for refund of ITC which is accumulated against indigineous purchases and Services

My exports are under Advance Authorization without payment of IGST

am i eligible for ITC refund ???

Thanks

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 Yes, you can claim an ITC (Input Tax Credit) refund on exports made under Advance Authorization, but the process and eligibility depend on specific conditions set by GST laws and relevant circulars. Here’s how you can approach this:

### 1. **ITC Refund for Exports Under Advance Authorization**

#### **Understanding Advance Authorization Scheme:**

- **Advance Authorization (AA):** This scheme allows import of raw materials without payment of customs duties for manufacturing and export of finished goods.
- **ITC on Indigenous Purchases:** You can claim ITC on inputs (raw materials) purchased domestically and used in the export of goods.

#### **Circular No. 17/17/2017-GST:**

This circular provides guidelines on the refund of ITC for exports. Here’s how it applies:

1. **Exports Under Advance Authorization:**
- **Without Payment of Duty:** When you export goods under Advance Authorization, you are not required to pay customs duties on imported inputs used. You can still claim ITC on GST paid on indigenous purchases and services used in the manufacture of exported goods.
- **Refund of ITC:** You are eligible to claim a refund of the accumulated ITC on inputs and input services used in the manufacturing of goods exported under Advance Authorization. This is subject to compliance with the provisions in GST law and specific guidelines provided by the circular.

2. **Export on Payment of IGST:**
- **Simultaneous Export under IGST and Advance Authorization:** You can export under Advance Authorization and also claim a refund of IGST paid on exports. This is because the export of goods under Advance Authorization typically does not attract customs duties but may still be subject to IGST.
- **Procedure for Refund:** You need to follow the procedures for claiming a refund of IGST under the refund provisions for exports. This involves filing a refund claim with supporting documents to substantiate the claim.

3. **Import Under Advance Authorization:**
- **With Payment of IGST:** If you import under Advance Authorization and pay IGST on such imports, you can claim the ITC on IGST paid. Refunds for such ITC should be sought through the prescribed procedure.
- **Without Payment of IGST:** When importing under Advance Authorization and exempt from IGST, the ITC cannot be claimed on IGST since it was not paid.

4. **Import After Export Obligation:**
- **Import After Export Obligation Fulfillment:** If you fulfill the export obligation and then import, you generally do not need to follow the Advance Authorization scheme but can claim ITC on GST paid on such imports as per the regular provisions.

### **Claiming ITC Refund:**

- **Eligibility:** You are eligible for an ITC refund on indigenous purchases and services used in the manufacture of goods exported under Advance Authorization, provided you follow the procedures outlined in GST laws and relevant circulars.
- **Documentation:** Ensure you maintain all necessary documentation, including export invoices, shipping bills, and proof of payment of GST/IGST. The refund claim needs to be filed with proper documentation as per the GST refund provisions.

### **Summary:**

1. **ITC Refund on Indigenous Purchases:** Yes, you can claim a refund of ITC on domestic purchases used in the export of goods under Advance Authorization.
2. **Export with IGST and Advance Authorization:** You can claim a refund of IGST paid on exports and also export under Advance Authorization simultaneously.
3. **Imports Under Advance Authorization:** You can claim ITC on IGST paid on imports. No ITC can be claimed if IGST is not paid.

**Recommendation:** For precise and detailed guidance tailored to your specific situation, consult with a GST consultant or tax professional. They can provide assistance with the application process and ensure compliance with the latest regulations and procedures.