CA Shubham Goyal
16 Dec 2023
Based on the details provided, here are a few points regarding claiming GST refund on export of goods and services without payment of tax using a credit advice:
CA K Narasimha Prakash
16 Dec 2023
- A credit advice by itself may not be considered as sufficient proof for claiming refund. Typically, documentary evidence like export invoices, shipping bills, bank realizations, etc are required.
- However, the credit advice would contain details like advice/reference number, invoice numbers, invoice amounts, tax amounts, etc. These details would need to be provided in the refund excel utility.
- The advice/reference number of the credit advice should be mentioned in the "BRC/FIRC No." column of the utility. This links the tax payment details with the export invoices.
- Along with the credit advice details, other documents like export invoices, shipping bills, bank statements showing realization of export proceeds, reconcilation statements, etc. would also need to be provided to establish the validity of the refund claim.
So in summary, while the credit advice alone may not suffice, the details in it would need to be provided in the refund claim utility. The advice/reference number acts as a link between the tax credits and exports. Additional documents would further substantiate the refund eligibility.
If a company exports goods and services under bond/LUT without payment of IGST, the credit available at the time of procuring of goods and services remains unutilized and idle in their Electronic Credit Ledger account. In such a case, the company can file a refund claim of goods and services exported under LUT without payment of IGST 1. The formula for calculating the refund amount is as follows:
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total Turnover 2.
It should be noted that no refund of unutilized Input Tax Credit is allowed in cases where the goods exported out of India are subjected to export duty .
All the details relating to GST on export is clearly mention in the shipping bills and it will populate in GST portal under refund.(BRC/FIRC column of excel utility).
I hope this helps!