27 February 2018
There are two option available for Export under GST.
Option-A- Supply goods or services or both under bond or Letter of Undertaking (LUT), subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilized input tax credit; or Option-B- Supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 (Refunds) of the Central Goods and Services Tax Act or the rules made there under.
Among these two option, if i obtain option b to pay IGST first and them claim refund of the same, what should be the refund amount ? Should it be amount of IGST on taxable value or IGST paid after setting off ITC (CGST and SGST) ?
Example-
I exported goods worth Rs. 1000 which attracts 18% IGST. I raised shipping bill with 18% IGST, hence invoice value will be 1180 (Taxable Value1000+IGST 180).
For the exported goods, i have purcahsed raw materials from local market worth Rs. 500 which also attract 9% CGST and 9% SGST. Invoice value will be Rs. 590 (Taxable Value 500+ CGST 45+ SGST 45).
While filling GSTR3B, i settoff this Input Tax Credit (ITC) of Rs. 90 and paid the balancing amount Rs. 90., i.e IGST payble 180, less ITC 90 (CGST 90+SGST 90).
After filling GSTR3B, now i am filling application for Refund of IGST.
So, While claiming refund of IGST, which amount i should claim ?
Rs. 90 ,amount paid in cash after setting off ITC or, Rs. 180, amount of IGST on Taxable Value ?
CAclubindia
