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Clarification - Rule 89 (4)

Pavan biyyala (38 Points)

08 May 2021

for the purpose of calculating Adjusted Total Turnover
# Excempt supply = ?? i.e., what does it includes

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 08 May 2021

All exempt goods and services such as export, pan masala, tobacco etc. are included

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Pavan biyyala (38 Points)
Replied 08 May 2021

Are export to a Sez/Eou are included

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 08 May 2021

Yes for calculating turnover all exempt supplies are included

Pavan biyyala (38 Points)
Replied 08 May 2021

Not for the purpose of calculating turnover but for the purpose of calculating Adjusted Total Turnover for the purpose of refund of input tax credit under rule 89(4) / (5)

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 May 2021

In term of Section 16 of IGST Act , Supply to Sez is Zero rated Supply (Export) , it's not Exempted supply .
In term of Section 2(47) of CGST Act , means which attracts nil rate of tax or which is Exempted from tax u/s 11 CGST or 6 IGST.
Adjusted turnover define under sub-rule(4) of rule 89 , does not include Exempted Supply .

Hence Exempted supply is not included in computing the Adjusted Total Turnover.

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