Amount to be Claimed as Refund on Export of Goods or Services

In the case of export of goods or services or both without payment of tax under bond/LUT refund of ITC shall be granted as per the following formula:

where,-

  1. “Refund Amount” means the maximum refund that is admissible;

  2. “Net ITC” means ITC availed on inputs and input services during the relevant period other than the ITC availed for which refund is claimed;

  3. “Turnover of zero-rated supply of goods” means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond/LUT, other than the turnover of supplies in respect of which refund is claimed;

  4. “Turnover of zero-rated supply of services” means the value of zero-rated supply of services made without payment of tax under bond or LUT, calculated in the following manner :-

    Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any prior period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period.

  5. “Adjusted Total turnover” means the sum total of the value of:

    1. the turnover in a State or a Union territory excluding turnover of services &

    2. the turnover of zero-rated supply of  services determined in D above and non-zero- rated supply of services

    excluding:

    1. the value of exempt supplies other than zero-rated supplies and

    2. the turnover of supplies in respect of which refund is claimed

    during the relevant period

  6. “Relevant period” means the period for which the claim has been claimed

In the case of refund on account of inverted duty structure, refund of ITC shall be granted as per the following formula –

where,-

  1. “Net ITC” means ITC availed on inputs during the relevant period other than the ITC availed for which refund is claimed and
  2. “Adjusted Total turnover” has the same meaning as assigned in point E above.

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