Refund of accumulated ITC due to supplies @0.1% GST merchant exporters
Query (Issue) Started By: – MohanLal tiwari Dated:- 27-12-2018 Last Reply Date:- 28-12-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Panelists,
We are manufacturing & supplying goods to merchant exporters @ 0.1%, Railway parts @5% and others @18%. Due to maximum supplies to merchant exporters and railways, the ITC is getting accumulated day be day.
Kindly advise whether we should claim refund of accumulated ITC on account of supplies to merchant exporters, if so how we can segregate the ITC against ITC taken for manufacturing of export or railway goods if some of the inputs are common for all.
Reply By KASTURI SETHI:
The Reply:
In GST era, the
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charging GST @0.1% for export through merchant exporter.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 54 (3) (ii) of CGST Act, 2017 'where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council." :
Since you are paying more tax on inward supply of materials procured by you and your out put tax rate is less than the rate tax paid on inward supplies you can claim refund due to the reason of inverted tax rate.
Reply By Ganeshan Kalyani:
The Reply:
Refund can be claimed for ex
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