Question13:

We are engage in export of grapes & vegetable, we procured capital goods machine, (air cooling unit, cooling tower, D G Sets). Our product is Nil rated and falls under HSN 0806. Kindly clarify we are eligible for GST Credit borne by us on purchase of capital goods. or we will eligible for get refund claim for the same as unutilised credit in our credit ledger account.

Answer:

Refund of accumulated ITC can be claimed under Section 54 of the CGST Act, 2017 as the export of goods is zero rated under Section 16 of IGST Act, 2017. As goods exported by you are NIL rated, you are not entitled to claim refund of the accumulated ITC. Suggestion - It is suggested that you may opt for availing facilities provided under Advance Authorisation/EPCG Schemes under Foreign Trade Policy for procuring inputs/capital goods without payment of tax. (Reply dt. 04/12/2017)