Goods and Services Tax – Started By: – saket s – Dated:- 14-6-2018 Last Replied Date:- 28-6-2018 – Hi, Need some input under following scenario. We locally purchase cars (at GST 28% + Cess 22% = 50%) and export the same. We do not have any local sales of cars, thus, we have accumulated huge ITC credit of cess, and hence we need to fully claim the compensation Cess as refund. For ITC refund the residual rule 89(4) is applicable in our case. However the formula prescribed under rule 89(4) Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total Turnover reduces our ITC refund substantially. Since our total exports is less than 10% and further the car exports is les
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