Rule 89(4) stipulates that on account of export of goods or services or both without pay of tax under security/LUT as per the arrangements of section 16(3) of the IGST Act, 2017, refund of ITC will be conceded according to the accompanying equation:

where,-

I. “Refund sum” signifies the most refund that is acceptable;

II. “Net ITC” signifies ITC profited on inputs and input services during the pertinent period other than the ITC benefited for which refund is guaranteed under sub-rules (4A) or (4B) [given below] or both;

III. “Turnover of zero-rated supply of goods” signifies the estimation of zero-rated supply of products made during the significant period without pay of tax under security/LUT, other than the turnover of provisions in regard of which refund is guaranteed under sub-rules (4A) or (4B) or both’

IV. “Turnover of zero-rated supply of services” signifies the estimation of zero-rated supply of services made without pay of tax under bond or LUT, determined in the accompanying way, to be specific:-

Zero-rated supply of services is the total of the payments got during the applicable period for zero-rated supply of services and zero-rated  supply of services where supply has been finished for which pay had been received ahead of time in any period before the significant period diminished by advances got for zero-rated supply of services for which the supply of services has not been finished during the pertinent period.

V. “Adjusted Total turnover” signifies the entirety of the estimation of:

i. the turnover in a State or a Union territory, as characterized under section 2(112), barring turnover of services; and

ii. the turnover of zero-rated supply of services decided as far as proviso (D) above and non-zero-appraised supply of services,

excluding

i. the estimation of exempt supplies other than zero-rated supplies; and

ii. the turnover of provisions in regard of which refund is asserted under sub-rule (4A) or sub-rule (4B) or both, assuming any,

during the significant period

“Relevant period” signifies the period for which the claim has been

Rule 89(4A) stipulates that on account of provisions received on which the provider has profited the advantage of considered exports under Notification No. 48/2017 CT dated 18.10.2017, refund of ITC, benefited in regard of different inputs/input services utilized in making zero-rated supply of goods or services or both, will be allowed.

Rule 89(4B) stipulates that where the individual asserting refund of unutilised ITC because of zero rated supplies without pay of tax has –

• Got supplies on which the provider has profited the advantage of Notification Nos. 41/2017 IT(R) or 40/2017 CT(R) both dated 10.2017, or
• profited the advantage of Notification 78/2017 Cus. or on the other hand 79/2017 Cus. both dated 13.10.2017,

the refund of ITC, profited in regard of inputs received under the said notices for export of goods and the input tax credit benefited in regard of different data sources or input services to the extent utilized in making such export of goods, will be allowed.

Rule 89(5) of the CGST Rules, 2017 stipulates that on account of refund because of inverted duty structure, refund of ITC will be allowed according to the accompanying equation –

where,-

I. “Net ITC” signifies ITC profited on inputs during the important period other than the ITC benefited for which refund is asserted under sub-rules (4A) or (4B) or both; and

II. “Adjusted Total turnover” has a similar meaning as allocated in sub-rule (4)

Enquire with Certicom Consulting in case of any queries.