GST Refund on zero rated supplies
Query (Issue) Started By: – Ankit Gangrade Dated:- 29-9-2018 Last Reply Date:- 11-10-2018 Goods and Services Tax – GST
Got 9 Replies
GST
While claimng "Refund of unutilised input tax credit on zero rated supplies",
Can we take refund of input tax credit on those input services which are capitalised with the value of capital goods in books of accounts?
Reply By Yash Jain:
The Reply:
Dear Sir,
Yes, we can take input for those input services which have been capitalized in the books of account, only with condition that the “Input” Should not have been capitalized.
Reason : When we fill Form GSTR 3B, the refund amount in RFD-01 is autopopulated from the said form. Hence yes, ITC can be applied for refund, only if the said input is not capitalized.
Comments from esteemed members highly solicited
Reply By Ankit Gangrade:
The Reply:
As per my opinion, Refund of unutilised ITC on same input services not available because this ser
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ational that Capital Goods Credit cannot be asked for refund, then it will be deemed that ITC on Capital goods also , cannot be utilized for discharge for GST Liability for Domestic sales, and hence should lapse.
Hence considering aforesaid, we can easily take ITC Refund for Capital Goods.
Comments from esteemed members highly solicited.
Reply By Nitika Aggarwal:
The Reply:
Dear Sir,
In my humble opinion, keeping in view the provisions of section 54 of CGST Act, 2017 read with rule 89 of CGST Rules, 2017, refund can be claimed only in respect of input and input services which are used for making such zero-rated supplies of goods or services or both but not in respect of capital goods.
Regards
Nitika Aggarwal
9999804960
Reply By Yash Jain:
The Reply:
Dear Sir/Madam,
Reproducing herewith the Rule 89 (Relevant Clauses Only – as such) and as under,
89(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant b
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ns the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;
Hence were it is categorically stated that Input is only in respect of Input other than capital Goods?.
Then what will happen to input of capital Goods as the full CGST Act does not impose any restrictions.
Comments from other members highly solicited.
Reply By Pavan Mahulkar:
The Reply:
Dear Yash Jain Sir,
We can't presume Inputs as Capital Asset
Please refer definition of INPUT as per section 2 of CGST Act
(59) “input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;
Reply By Nitika Aggarwal:
The Reply:
I have the same view as inscripted by Mr. Pavan Mahulkar.
The Government is going to give benefit only in respect of those input and input services which are used in the course or furtherance of Zero-rated supply not other than that.
Nitika Aggarwal
9999804960
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