Question 46:
This query is related to Refund on account of Export without payment of IGST (LUT).
Say, if there are purchases on which ITC is Rs.100 & 150 in the m/o July, 17 and Aug, 17 respectively for exports to be made in the m/o Aug, 17.
Now as per Circular No. 37/2018, ITC of Rs. 100 (July) can be carried forward in the m/o Aug (in which exports has been made)

But when we are trying to file RFD- 01 for the m/o Aug, 17, we are taking Rs250 (100+150) as ITC.
But the GST system is considering the lower of 250 or 150, i.e. Rs.150 , i.e amount claimed by us (Rs. 250) and amount claimed in GSTR -3B in the m/o Aug,17 (Rs. 150)

Explain how to claim refund of Rs.100/- for the m/o July, 2017.

Answer

Refund of ITC in case of zero rated supply under LUT shall be claimed in accordance of rule 89(4) with following formulas:-

CGST RULE 89
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ``Adjusted Total Turnover
Where, -
(A) `Refund amount` means the maximum refund that is admissible;
(B) `Net ITC` means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or(4B)or both;
(C) `Turnover of zero-rated supply of goods` means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or(4B)or both;
(D) `Turnover of zero-rated supply of services` means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:-
Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;
(E) `Adjusted Total turnover` means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding -
(a) the value of exempt supplies other than zero-rated supplies and
(b) the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or(4B)or both, if any, during the relevant period;
(F) Relevant period- means the period for which the claim has been filed.
Further, Circular No.37/11/2018-CGST dt. 15.03.2018 S.no 11 has clarified that in above refund formula turnover and Net ITC does not link only with link tax period but it relates to the period for which refund claim has been filed, which can be clubbing of calendar months / quarters, however can not spread over across different financial years
Thus, you can claim the credit for July Rs 100 with credit of August Rs. 150 as per rule 89(4) .
Now our question is how to do it practically as the GST system is not considering the ITC of Rs. 250 (100+150)


(Reply dt.10/05/2018)