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TMI BlogDuty Drawback & Input Credit - under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir We are a Man Made Fabrics exporter (95% export) located at Kannur District, Kerala. We are exporting against Letter of Undertaking without paying GST. We are availing duty drawback in the lower rate (from 1/7/2017 onwards), earlier we used to availed duty drawback in the High rate i.e till 30/6/2017. Could you please clarify my following query Whether we are eligible for avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Input Credit for materials purchased ? Whether Input Credit can avail for Integrated Tax paid for Import? Whether input credit can avail on SGST/CGST paid on Reversal Charge Mechanism? We have already filed GSTR3B for July August 2017 after making payment towards CGST/SGST on RCM and showed as ITC receivable for tax on purchases/RCM, is this Correct or else how we can reverse these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC. We have not any set off against this ITC receivable. Your early feedback on my above subject will be highly appreciated. - Reply By SHIVKUMAR SHARMA - The Reply = Reply as under :-Subject to your output supply is taxable. Whether we are eligible for avail Input Credit for materials purchased ? -YES Whether Input Credit can avail for Integrated Tax paid for Import? -YES Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input credit can avail on SGST/CGST paid on Reversal Charge Mechanism? -YES We have already filed GSTR3B for July August 2017 after making payment towards CGST/SGST on RCM and showed as ITC receivable for tax on purchases/RCM, is this Correct or else how we can reverse these ITC. We have not any set off against this ITC receivable.-YES, IT IS CORRECT PROCEDURE - Reply By unni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kv - The Reply = Sir, Thanks, since we are availaing duty draw back in lower rate (2.50%), my question is whether we can avail input credit on purchase/RCM or not ? - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per proviso 3 of Section 54 (3) of CGST Act, 2017 no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of central tax or claims refund of the integrated tax paid on such supplies. As per proviso 3 of Section 54 (3) of Maharashtra Goods and Services Tax Act, 2017 no refund of input tax credit shall be allowed, if the supplier of goods or services or both claims refund of the integrated tax paid on such supplies. In respect of exports only integrated tax is payable. If yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u export the goods on payment of IGST and claim the refund of the same under proviso 3 of Section 54 (3) of CGST Act, 2017 then you are eligible to claim refund of credit of input tax paid on inputs and input services utilised for supply of export goods. Draw back is available only in respect of central tax and integrated tax. One more point which I am not able to understand is when you sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply the export goods under letter of undertaking/bond without payment of IGST how can you claim drawback? - Reply By SHIVKUMAR SHARMA - The Reply = Yes, Yoy can avail input tax credit on purchase/RCM - Reply By unni kv - The Reply = Sir, Our output supply is taxable as per GST but exporting with Nil Tax against Letter of Undertaking and availing Duty Drawback (at lower rate i.e 2.50%) . Sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll whether we can avail Input credit on purchase and tax paid on RCM ? - Reply By unni kv - The Reply = Dear Rajagopalan Ranganathan Sir, we are availing duty drawback not in respect of Central Tax or IGST paid on supplies, it is on the basis of the rates of drawback specified against the various tariff items. - Reply By SHIVKUMAR SHARMA - The Reply = Your output supply is taxable as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r GST Rule you are paying GST on output supply in domestic market but exporting with Nil rated tax against Letter of Undertaking availing duty draw back . Still you can avail Input tax credit on purchase RCM. - Reply By unni kv - The Reply = Dear Sirs Whether we can reverse the Input Tax Receivable amount filed in GSTR3B while filing GSTR2 ? Not done any set off against Input C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit. regards - Reply By Himansu Sekhar - The Reply = Yes you can take credit on the above three occasions. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Please clarify in respect of which duty/tax you are claiming drawback? - Reply By Ganeshan Kalyani - The Reply = Either you pay IGST and claim refund. Here paying IGST on export means net liability arising at after setting off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input tax credit. Second option is do not pay IGST under bond of letter of understanding and claim duty drawback. - Duty Drawback & Input Credit - under GST - Query Started By: - unni kv Dated:- 21-9-2017 Goods and Services Tax - GST - Got 11 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment - 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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