Ankit Shah (CA) (34 Points)
19 May 2020Hi,
There are two types of Refund in GST in export case,
1. Refund of IGST paid on export: without considering ITC
2. Refund of ITC, if export at zero rated.
My question:
Say IGST paid on export Rs. 100 and claimed refund & received.
and ITC paid on purchase Rs. 1000 and shows in electric ledger.
Now how to claim Refund of excess 900 balance remains in credit ledger? Please suggest rule or procedure.
Hariom Viradiya
(182 Points)
Replied 19 May 2020
Ankit Shah
(CA)
(34 Points)
Replied 19 May 2020
Firstly do you agree that whenever i pay output gst we pay net of ITC i.e. after adjusting ITC
TRUE...
Now, solving your example
1) If i am paying IGST on export :- Refund = Output liability - ITC available in credit ledger = 1000 - 900 = 100 ( this is the amount that you have paid to government as tax)
IN MY CASE: OUTPUT LIABILITY IS 100 DUE TO LOWER GST RATE ON EXPORT - ITC 900.... REFUND CASE NOT ARISE..
2) If i am exporting under LUT / BOND without payment of IGST : Refund = ITC in credit ledger = 900
BUT WE PAID IGST ON EXPORT AND CLAIM REFUND..
ok I will explain differently:
GST on output: 10000 * 1% = 100
GST on Input : 9000 * 18% = 1620
we claimed refund 100 on export...how to claim Unutilized credit balance of 1520??
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 19 May 2020
CAclubindia
