TMI BlogRefund of accumulated ITC due to supplies @0.1% GST merchant exportersX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Panelists, We are manufacturing supplying goods to merchant exporters @ 0.1%, Railway parts @5% and others @18%. Due to maximum supplies to merchant exporters and railways, the ITC is getting accumulated day be day. Kindly advise whether we should claim refund of accumulated ITC on account of supplies to merchant exporters, if so how we can segregate the ITC against ITC taken for manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring of export or railway goods if some of the inputs are common for all. - Reply By KASTURI SETHI - The Reply = In GST era, the concept of 'merchant exporter' has lost its relevance. Now there is no difference between the terms, 'Manufacturer Exporter' and 'Merchant Exporter' for the purpose of export.. The procedure in respect of the supplies made for export is same. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... You can claim refund of accumulated credit, being maximum supplies for export. Regarding segregation, you may consult CMA. He can certify the data. - Reply By MohanLal tiwari - The Reply = Thanks Kasturi Sir, For us, the Merchant exporter is buyer who is procuring materials from us for export and registered for the purpose and paying us GST @ 0.1%. For the direct exports, we are charging ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l GST and getting refund also. Please advise for refund wherein goods are supplied by us charging GST @0.1% for export through merchant exporter. - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to Section 54 (3) (ii) of CGST Act, 2017 'where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council. : Since you are paying more tax on inward supply of materials procured by you and your out put tax rate is less than the rate tax paid on inward supplies you can claim refund due to the reason of inverted tax rate. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = Refund can be claimed for excess input tax credit accumulated on account of less output tax payable. And as regard segregation of input tax credit into input proportionate to supply @0.1%, export and regular supply, you may resort to turnover ratio. - Reply By Nandan Khambete - The Reply = Yes, refund by way of Inverted Tax structure can be claimed certainly. My client is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claiming since October 2017 and tefund are sanctioned without any issue. - Refund of accumulated ITC due to supplies @0.1% GST merchant exporters - Query Started By: - MohanLal tiwari Dated:- 27-12-2018 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 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmanagementindia.com - 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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