Refund of unutilised itc

This query is : Open

sekar (Querist)
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25 December 2018 We are a 100 % Export oriented unit. We do not have any DTA sale. GST paid on capital goods is also a part of our unutilised ITC. This GST paid on capital goods is not being accepted for refund by the jurisdictional officers. They say that we can only adjust it to our taxes DTA sale. But we do not have any DTA sale. Please advise.

SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)
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25 December 2018 Sir,
GST paid on capital goods is not eligible for refund in case of exports against LUT, Hence it is advisable to opt for payment of export on payment of tax and utilize the amount of input on capital goods on payment of such tax and apply for refund of tax paid on export.

Thanks and regards
CA Shubham Sharma
Contact No.9462302922
email-shubham.vnv@gmail.com

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sekar

sekar (Querist)
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25 December 2018 Thankyou Sir for your reply. But being a 100 % EOU we import raw material and consumables at concessional rate of duty ( without payment of customs duty and IGST ) and hence if we make our exports by payment of IGST ( instead of exports against LUT) the refund rule says we are not eligible to get the IGST paid on exports as refund. Please advise

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