• Claim input GST without output GST?

Hi:

We are a service provider with exclusively foreign clients. All our services are exports under LUT @0% GST paid.

Is it possible to file input GST and get refund even though there is no output GST paid? How does that work?
Asked 2 months ago in GST

- Under the GST Act, export services are treated as zero rated supply. You can claim refund of ITC on inputs by filing refund application online.  

 

For detailed discussion and assistance in filing refund application yoy may consult telephonically.

Vivek Kumar Arora
CA, Delhi
4408 Answers
527 Consultations

5.0 on 5.0

Dear Sir,

 

As per the provisions included under IGST law, the exports of services are considered as zero-rated supply is exempted from GST and are eligible to claim the refund of GST paid.

 

A separate refund application in RFD-01 is required. You need to login to the GST portal and selecting Services > Refunds > Application for Refund > Export of Services with payment of tax > RFD-01.

 

We may assist you in entire procedure.

Payal Chhajed
CA, Mumbai
5153 Answers
218 Consultations

5.0 on 5.0

Yes you can file for refund. The application is filed online. I can apply for the same. Do schedule a consultation with me.

Ruchi Goel Anchal
CA, Gurgaon
496 Answers
8 Consultations

5.0 on 5.0

Hello,

 

Yes, It is possible to claim the refund of the Input tax credit since you are providing zero-rated supplies(exports). 

The procedure would involve the filing of the correct refund application. FIRC (Foreign Inward Remittance Certificate) is the important document required here to substantiate the occurrence of the event of export.

I hope this answer satisfies your requirements. For a detailed resolution of your query, you can contact us directly at badlaniassociates at Gmail or take a phone consultation.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
2593 Answers
15 Consultations

5.0 on 5.0

Dear Sir,

 

In reference to your query, please note that Export of services are not exempt but classified as Zero Rated Supplies.

You are very much eligible to claim refund of the applicable ITC by filing the relevant for RFD-01.

The said application has to be made on period basis which be can from 1 month to 1 Financial Year.

 

However please note that you are compliant with the applicable provisions of law whilst claiming ITC, i.e. Section 16, 17 of The CGST Act, read with Rules 36, 42 & 86 of The CGST Rules 2017.

 

Please advise in case of any further clarification.

 

Thanks & Regards,

CA Aditya Dhanuka.

https://www.linkedin.com/in/aditya-dhanuka-69824451/

Aditya Dhanuka
CA, Kolkata
52 Answers
2 Consultations

5.0 on 5.0

Respected Sir,

 

The taxpayers can claim the refund of accumulated ITC in the following situations:

  • When an inverted tax structure prevails in the business.
  • With respect to the export of goods or services made without a tax payment by reporting the Letter of Undertaking (LUT) or bond.
  • In case of supplies to Special Economic Zone (SEZ) units or developers without a tax payment.
  • By foreign embassies and international organisations on their purchases of goods or services.

Cases, where refund of unutilised ITC is not allowed, is as follows:

  • If goods exported out of India attract the excise duty, then the accumulated ITC left unutilised will not be available for GST refund. 
  • If the supplier of goods has claimed the duty drawback on the excise duty paid or has claimed the refund of IGST paid on such supply.
  • In the case of an inverted tax structure, the output is nil rated or exempt from GST.

 

As your case is covered in the above cases, You can claim Refund.

 

Time limit and frequency for claiming refund of accumulated ITC

As per Section 54 of the CGST Act, any person claiming the refund of GST or the interest paid should make an application in form RFD-01 within two years from the relevant date for most types of refunds. The “relevant date” given here varies with the type of refund claimed, explained in our article “Important definitions in GST refund”. 

In case of unutilised ITC on account of exports or supplies to SEZ (zero-rated supplies), the applicant can file RFD-01 at the end of any tax period.

In case of refund claims by the embassies or international organisations, the application must be filed for the refund before the expiry of six months from the last day of the quarter in which such goods/service were received. The form used is RFD-10 in such cases after the furnishing of GSTR-11 return..

 

Thanks & Regards

Shiv Kumar Agarwal

Shiv Kumar Agarwal
CA, Delhi
489 Answers
74 Consultations

5.0 on 5.0

Yes you can claim input Refund based on export of service, alternatively we can also do sales with payment of tax utilising GST credit

 

We are doing it regularly for our client

Vishrut Rajesh Shah
CA, Ahmedabad
789 Answers
30 Consultations

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Yes, you can still claim the refund of ITC. You need to fill up the refund Form but its a little cumbersome process.

Lakshita Bhandari
CA, Mumbai
5638 Answers
763 Consultations

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For capital goods you can supply with payment of tax and can claim refund

Vishrut Rajesh Shah
CA, Ahmedabad
789 Answers
30 Consultations

5.0 on 5.0

Yes you can surely claim refund of input tax credit even if there is no export and it is very easy in case of export of the input is related to your business.

 

We can help you file refund application and get refund

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4008 Answers
64 Consultations

5.0 on 5.0

Dear Sir,

 

In reference to your query, the immediate benefit you get is in the form of Cash Flow.

The refund being received in your bank would help in your working capital.

 

Also Refund of GST in relation to export can be claimed on all items - Goods, Capital Items & services.

Hence you can very well claim refund of ITC of GST paid on capital items. Depreciation can be claimed on the Net value.

 

Please advise in case of any further clarification.

 

Thanks & Regards,

CA Aditya Dhanuka.

 

https://www.linkedin.com/in/aditya-dhanuka-69824451/

Aditya Dhanuka
CA, Kolkata
52 Answers
2 Consultations

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- Office equipments, laptops are considered as capital goods and you can claim (Input tax credit) ITC on such goods. Further you can claim refund of such unutilised credit. On GST component in total cost either you can claim depreciation or ITC.  On sale of such capital goods, you are liable to pay amount equal to the ITC taken on such capital goods reduced by the 5% points for every quarter or part thereof from the date of issue of the invoice for such goods or tax on transaction value whichever is higher. 

Vivek Kumar Arora
CA, Delhi
4408 Answers
527 Consultations

5.0 on 5.0

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