TMI BlogGST refunds under rule 89(4B) and 89(4)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear all.. I am an exporter of fabrics making zero rated sales without payment of tax. I have made export of goods under Advance Authorisation and normal exports with LUT. I have utilised common inputs and input services to export normally and also under AA. I have filed refund under 89(4B) for the exports made with advance authorisation with the formula prescribed under rule 89(4) . Also, I ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve applied proportionate refund for exports under LUT for the common inputs. Can I claim refund of the common input tax credits both under rule 89(4B) and 89(4) . As common credits are used, I have included the same ITC availed for refunds u/r 89(4B) in the net ITC calculation for refunds u/r 89(4) also.. Eg. I have ITC of Rs 1lakh related to input. The same Input is used in both normal exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts and exports under AA scheme.. hence I have applied refund both u/r 89(4B) and 89(4) by including RS. 1lakh in net ITC calculation as it is a common input . Is it right as rule 89(4) says ITC availed for refunds u/r 89(4) should be excluded from net ITC calculation.. Or I should fully exclude the ITC availed for refund in 89(4B) for net ITC calculation u/r 89(4) .Kindly clarify.. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anks in advance. - Reply By Shilpi Jain - The Reply = Purchase against AA on payment of taxes and export of manufactured goods are 2 separate transactions. You should be eligible for refund for both these transactions as per the provisions of the law. There is no restriction in law in this regard. The formula itself excludes the ITC relating to purchase under AA when you apply for export refun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. - Reply By Shilpi Jain - The Reply = In the case of VSM Weavess India (P.) Ltd. v. Assistant Commissioner [ 2024 (1) TMI 924 - MADRAS HIGH COURT ] . - it was held that Claiming refund under zero rated supply will not disentitle from claiming refund under inverted duty structure. Similarly, merely because refund is claimed under AA, export refund should not be denied. - Reply By Prab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hakar Jebakumar - The Reply = Thank you Shilpa Jain mam for your reply.. Please do clarify.. whether I am entitled to refund u/r 89(4) for the same ITC ( Common input ) availed for refund claim u/r 89(4B) ( as ITC availed for refund claim u/r 89(4A) (4B) shall be excluded from net ITC calculation). - Reply By Palanisamy KS - The Reply = To my understanding, the Rule requires you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to allocate common ITC pertaining to inputs and input services to zero-rated supplies falling within the scope of Rule 89(4B) and such allocated ITC should not be included in Net ITC for claiming refund unde Rule 89(4) . - Reply By Shilpi Jain - The Reply = For deemed export you should get credit of the GST paid on the purchases made against AA. Common credits and others you should be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to encash as a refund filed under export - GST refunds under rule 89(4B) and 89(4) - Query Started By: - Prabhakar Jebakumar Dated:- 25-2-2024 Last Replied Date:- 26-2-2024 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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