FAQ’s on Export Refund

Writer: CS Payal Kataria

Question 1: I am exporter of goods. I availed drawback in respect to central tax. Can I claim refund of input tax credit of central tax paid?
Ans. No, refund of input tax credit shall not be allowed in cases where the supplier of goods or services or both avails of drawback in respect of central tax.

Question 2: I am exporter of goods. I availed drawback only with respect to basic customs duty. Am I eligible for refund of unutilised input tax credit of central tax/state tax/integrated tax?
Ans. Supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision.

Question 3: I am exporter of goods. I availed drawback in respect of central tax. Am I eligible for refund of eligible credit on account of state tax?
Ans. Refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax

Question 4: Which is the most common mistake exporters are doing due to which refund claims are not processed and delayed?
Ans. Refund claims are not being processed on account of mis-matches between data contained in FORM GSTR-1, FORM GSTR-3B and shipping bills/bills of export.

Question 5: What is the solution for error committed while entering the details of invoice/shipping bill/bill of export in Table 6A or Table 6B of Form GSTR-1
Ans. If a taxpayer has committed an error while entering the details of an invoice / shipping bill / bill of export in Table 6A or Table 6B of FORM GSTR-1, he can rectify the same in Table 9 of FORM GSTR-1.

Question 6: When and where should exporters to furnish a bond or LUT?
Ans. An exporter is required to furnish a bond or Letter of Undertaking (LUT) to the jurisdictional Commissioner before effecting zero rated supplies.

Question 7: What solution is available if there is delay in furnishing of LUT?
Ans. In this regard, it is emphasised that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex post facto basis taking into account the facts and circumstances of each case.

Question 8: I am exporter. I applied for refund and deficiency memo is issued to me. What should I do now?
Ans. FORM GST RFD-03 (deficiency memo) is issued where deficiencies are noticed in refunds claims. Once the deficiency memo has been issued, the claimant is required to file a fresh refund application after the rectification of the deficiencies

Question 9: What value of goods should be shown in GST Invoice and shipping bill/bill of export?
Ans. An exporter, at the time of supply of goods declares that the goods are for export and the same is done under an invoice issued under rule 46 of the CGST Rules. The value recorded in the GST invoice should normally be the transaction value as determined under section 15 of the CGST Act read with the rules made thereunder. The same transaction value should normally be recorded in the corresponding shipping bill / bill of export.

Question 10: I am registered person in GST. I supplied goods at concessional rate to merchant exporter. Am I eligible for refund on account of inverted tax structure?
Ans. The supplier who supplies goods at the concessional rate is eligible for refund on account of inverted tax structure as per the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the CGST Act.

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this writeup in the respective scenarios. While due care has been taken in preparing this writeup, the existence of mistakes and omissions herein is not ruled out. No part of this writeup should be distributed or copied (except for personal, non-commercial use) without our written permission.

2 Comments

  • Narender

    Hello sir,
    I want to take refund if inverted duty structure
    Explain the procedure wht amount will be taken in statement 1 of online Rfd 01A
    And wts documents to be enclosed while submitting application to jurdicitional officer

    Regards
    CA Narender Gupta
    09899768787

    • Pankaj Kataria

      Dear Mr. Narender Gupta,

      In reference to your query, please find mentioned here below the procedure:

      1. File online Form RFD 01 A
      2. GST Portal will generate ARN
      3. Submit Print out of RFD 01A, ARN receipt with Jurisdictional officer. May submit copy of Export Invoice/shipping bill if asked by jurisdictional officer

      Where zero-rated supplies are made without Tax payment by executing a Letter of undertaking/Bond:
      1) Formula to calculate the Refund amount of ITC to be shown in statement 1
      2) Net ITC x [( Turnover of zero-rated supply of Goods + Turnover of zero-rated supply of Services)/ Adjusted Total Turnover]

      Where
      Net ITC : Input tax credit availed on inputs and inputs services during relevant period

      Turnover of zero-rated supply of Goods : Value of supply of Goods during relevant period made without tax payment by executing bond/ letter of undertaking for the relevant period

      Turnover of zero-rated supply of Services : Value of supply of Services during relevant period made without tax payment by executing bond/ letter of undertaking

      Regards,
      Team Pakkabill

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