The exporters would be qualified for the recovery of the utilized ITC of GST beneath the Reverse Charge Mechanism on transportation costs to the Goods Transportation Agency, said Authority for Advance Ruling (AAR) of Chhattisgarh.
Under the Letter of Undertaking (LUT), the petitioner would be enrolled as an exported under the GST Act and would be involved in exporting the molasses to Bangladesh without GST payment.
Also, they bought it through the identical registered assessee of Haryana and Punjab post payment of 0.1% GST on the goods.
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Apart from explaining the kind of activities they engaged in they would not furnish any additional statutory calculation or the factual clarification of the problems beneath consideration for the asked judgment in the ARA01 filed, the petitioner said.
The representative, Alok Chandra Das, Senior Accountant has performed the personal hearing of the petitioner and submitted the sample copies of the shipping bills, invoice cum packing list.
The bench shows that section 54 of the CGST Act, 2017 read with section 16(3)(a) of the Integrated Goods and Services Tax Act, 2017 prescribing the refund claim of any unused Input Tax Credit (ITC) at the finish of any tax period.
The authority pointed out that the CGST Act, 2017’s section 2(106) mentioned the “tax period” is the time period towards which the return should get furnished. Post finishing of GSTR-1 and GSTR-3B monthly returns, an exporter might ask for a refund of any Input tax credit that does not being utilized.
The bench consisting of Sonal K. Mishra and Rajesh Kumar Singh ruled that the petitioner would be qualified for the refund for the unutilised ITC of these GST furnished beneath the transportation of the levy furnished beneath Reverse Charge on transportation charges levy to Goods Transport Agency(GTA) in India for the purpose of the export and the GST furnished on the additional ancillary services towards the export through the enrolled service providers of India. Under section 54 of the CGST act read with section 16(3)(a) of the IGST act, the same decision was being incurred.
