REFUND OF ITC -, Goods and Services Tax - GST

[SAFETAB LIFESCIENCE]

Dear Experts,

We are going to submit application for refund of ITC accumulated due to inverted duty structure. We are not exporters and we are not having zero/nil rated outward supply.

In computation of of maximum refund to be claimed (statement-1), the net input tax credit, we should exclude ITC on input service and ITC on capital goods (or) we can exclude only ITC on input services alone. We understand from 26.09.2019, refund rules have been amended.

Net input tax credit (4) (₹)

Edit the Net ITC to exclude, the ITC availed on input services and the ITC of refund claimed under Rule 89 (4A) and/ or (4B)

In the application, it shows like this above.

Whether, we can include ITC taken on Capital Goods or Not ???

Posts / Replies

[KASTURI SETHI]

See Rule 89(5) of CGST Rules, 2017 inserted vide Notification No.26/18-CT dated 13.6.18 effective retrospectively i.e. from 1.7.17. Capital Goods are to be excluded.