QUESTION

Refund of ITC on Export of Goods & Services without Payment of Tax Refund Amount = (Turnover of zero rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total turnover Q;- What is the value of Turnover of zero rated supply of goods it is FOB value or Invoice Value.

ANSWER

FACTS OF THE CASE: Value to be considered for turnover of zero rated supply of goods for filing refund of ITC.

LAW APPLICABLE: SECTION 15 OF CGST ACT

(1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.--------------------

INTERPRETATION: Value of supply as per Section 15 shall be the transaction value which is the price actually paid or payable for the supply of goods or services i.e. the invoice value. Further Value of supply of outward supply furnished in GSTR-1 as per section 37 is also taxable value i.e. invoice value. Therefore value to be considered for claiming refund in Section 54 shall also be invoice value.

CONCLUSION: For Refund of ITC on Export of Goods & Services without Payment of Tax, value of Turnover of zero rated supply of goods is INVOICE VALUE and not FOB value. (Reply dt. 30/03/2022)