Refund calculation
DIPESH SHARMA (132 Points)
20 July 2020
refund calculation for export without payment of tax ( including local sales also) plzz... suggest
4 Replies
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 20 July 2020
Not worth applying for this refund. Just lot of documents without any outcome.
Better to do IGST paid exports and try reducing the GST credit ledger in future.
This is a professional advice as I am doing such refunds day in and day out.
Better to do IGST paid exports and try reducing the GST credit ledger in future.
This is a professional advice as I am doing such refunds day in and day out.
ansh 99
(229 Points)
Replied 20 July 2020
Hello Dipesh Sharma,
I will briefly tell you about procedure for export without payment of tax.
firstly If you do not have sufficient ITC amount i.e ITC is 100and output tax is more than 100 in such a case issue a LUT from GST portal. In this case no need to issue Tax invoice.
If you have sufficient ITC i.e ITC is 100 and output tax is less than 100 in such case issue Tax invoice indicating output tax amount clearly and along with other documents like export invoice send it to customs . In such case you can easily take credit in GSTR 3B .
For documentation part , it is not as difficult as it looks , once you are versed with it , it becomes less hectic . Only difference between documentation is of Tax invoice only .
I have audited financials of a purely export oriented company ,they also follow the same procedure and are getting the refunds easily and timely with no complications.
I will briefly tell you about procedure for export without payment of tax.
firstly If you do not have sufficient ITC amount i.e ITC is 100and output tax is more than 100 in such a case issue a LUT from GST portal. In this case no need to issue Tax invoice.
If you have sufficient ITC i.e ITC is 100 and output tax is less than 100 in such case issue Tax invoice indicating output tax amount clearly and along with other documents like export invoice send it to customs . In such case you can easily take credit in GSTR 3B .
For documentation part , it is not as difficult as it looks , once you are versed with it , it becomes less hectic . Only difference between documentation is of Tax invoice only .
I have audited financials of a purely export oriented company ,they also follow the same procedure and are getting the refunds easily and timely with no complications.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 21 July 2020
Formula for computing refund:
Refund Amount = Turnover of Zero Rated supply X Net ITC ÷ Adjusted Total Turnover.
Yes local sale includes in total turnover.
Refund Amount = Turnover of Zero Rated supply X Net ITC ÷ Adjusted Total Turnover.
Yes local sale includes in total turnover.
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 21 July 2020
CBIC circular 23.03.2020 requires exporters to compare export prices with domestic sales price of same product by similar sellers.
Any resolution for below issues ??
1. In case of CIF contract, insurance and freight component is apportioned to various product categories based on weight/value etc. However no such huge expenses incur in case of domestic sales
2. The export prices could differ in a big way if the export is done through air instead of sea.
3. It is possible that the goods exported are not sold in domestic market at all by same seller as well any other seller.
4. Its difficult to find similar placed sellers as there could be differences like volume,capital,workforce.
5. Export and domestic product and pricing database comes at very high costs.
notification no. 16/2020 - Central tax dated 23.03.2030
Any resolution for below issues ??
1. In case of CIF contract, insurance and freight component is apportioned to various product categories based on weight/value etc. However no such huge expenses incur in case of domestic sales
2. The export prices could differ in a big way if the export is done through air instead of sea.
3. It is possible that the goods exported are not sold in domestic market at all by same seller as well any other seller.
4. Its difficult to find similar placed sellers as there could be differences like volume,capital,workforce.
5. Export and domestic product and pricing database comes at very high costs.
notification no. 16/2020 - Central tax dated 23.03.2030
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