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Gst input

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ranjeet kumar

accountant

29 Points Posted on 26 June 2018

Hi Team,

We are a export ( exporting to US)B unit running at two locations:

Noida- Filled LUT for getting zero rate on export.

Hyderabad

we are also doing domestic business from both the units.

while calculation of GST we had done the following adjustment:

For Noida we have Domestic and Export both sales we had taken input tax credit for the full invoice against Domestic sales rather than claiming as refund towards export.

For Hyderabad we have created a input tax credit for hyderabad which we had not claimed anywhere.

Query:

We are adjusting full tax credit at Noida towards Domestic sales-Is this correct?

Requested to you please provide me a note.

Replies (1)

Sundararajan S

Final Student of ICAI

1764 Points Posted on 26 June 2018

Strictly speaking if you have filed LUT you have to apply for refund. However, if you have not applied for refund, tax does not gets reversed. So, it's rather utilized against tax payable on domestic supplies. So logically, legally it's not wrong. But as per rules it is not a correct practice, though it's not a harmful practice. But, anyway, in future please avoid this as it may lead to confusion. If you have filed LUT, apply for refund as well.