Refund Rules for Zero-Rated GST Supplies: No ITC Refund with Export Duty or Drawback Claims, per Rule 89(4).

In the context of zero-rated supplies under GST, a registered person exporting goods or services or supplying to an SEZ without IGST payment can claim a refund of input tax credit (ITC) using form RFD-01. However, no refund is allowed if goods are exported with export duty or if a supplier claims a drawback or IGST refund. Rule 89(4) of the CGST Rules outlines the formula for calculating the refund of ITC, considering the turnover of zero-rated supplies and adjusted total turnover. The formula excludes ITC for deemed exports and imposes limits on the turnover of zero-rated goods, as clarified in recent amendments and circulars.

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