GSTAT Order
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GST - Refund of Input Tax Credit on export of goods without payment of tax under Rule 89(4) of CGST Rules, 2017 - Turnover of zero-rated supply of goods - Invoices issued during relevant period for goods exported after the relevant period - Refund claim was filed by the exporter for the tax period in question and was sanctioned - Department appealed on the ground that goods covered by four Shipping Bills were exported after the relevant period, so the turnover of zero-rated supply had to be reduced and refund reduced - Whether refund of ITC is inadmissible in respect of invoices where the goods were actually exported in a period subsequent to the relevant period for which the refund claim was filed - HELD - The refund amount under Rule 89(4) is that portion of Net ITC which is in the ratio of turnover of zero-rated supply of goods to Adjusted Total Turnover, and all three figures have to be for the same relevant period - Under Sections 12 and 31 of the CGST Act, 2017, where the supply involves movement of goods, the supplier shall issue a tax invoice before or at the time of removal of goods, and the tax becomes payable at that time. In case of export under bond or Letter of Undertaking, the supply of export goods, which is a zero-rated supply, takes place at the time of removal of such goods for export and preparation of tax invoice, even though the goods are treated as duly exported only when they leave India as per the endorsement on the Shipping Bill - The turnover of zero-rated supply of goods has to be calculated from the tax invoices issued for goods intended to be exported. If invoices for goods cleared for export under bond or letter of undertaking are issued during the relevant period, they are included in the turnover of zero-rated supply regardless of whether the goods were actually exported during the relevant period - Refund can be given only after the exporter establishes that the goods have actually been exported. It is not disputed that the invoices were prepared during the relevant period and that the goods were exported - There is no reason to deny refund in respect of such goods, and the Revenue appeal is dismissed - Refund of Input Tax Credit under Rule 89(4) of CGST Rules, 2017 - Reduction of Net ITC on account of inadmissible ITC - Department contended that a part of the ITC taken for calculating refund was ineligible and that Net ITC had to be reduced accordingly - Whether the amount of Net ITC for calculating the refund is required to be reduced by the amount of inadmissible ITC - HELD - As held by the First Appellate Authority, the amount of inadmissible ITC is not going to make any significant change in the figure of maximum refund admissible under the formula in sub-rule (4) of Rule 89, which is much higher than the amount of refund claimed by the exporter - The appeal of the Department is dismissed.
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