Go Global Inc., a firm registered under GST, submits the following information pertaining to the month of September 2025: (i) Export of fruit jam:…

CA Final · Indirect Tax Laws · PYQS · May 2026
Go Global Inc., a firm registered under GST, submits the following information pertaining to the month of September 2025: (i) Export of fruit jam: 1,000 bottles (ii) Domestic inter-State sale of fruit jam: 2,500 bottles (iii) Eligible Input Tax Credit (ITC) of IGST for the given month for inputs, input service and capital goods amount to 1,50,000,2,50,000 and - 3,00,000 respectively. (iv) Rate of fruit jam for domestic supply was priced at 120 per bottle. (v) For export, the same product was priced at 200 per bottle. (vi) In domestic market, the product is taxed at 18% under IGST. The firm had duly filed LUT for making export without payment of tax in accordance with the provisions of the IGST Act, 2017. FOB value declared in the shipping bill and value as per tax invoice was one and the same. Determine the eligible refund amount that can be claimed by Go Global Inc. for the given month under the GST law. Note: Assume all the conditions for refund have been complied with.

Suggested Answer and Working Notes:

(a) Refund amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) / Adjusted Total Turnover × Net ITC where, (A) Turnover of zero-rated supply of goods is lower of: (i) Value of zero-rated supply of goods = 2,00,000 [1,000 × ₹ 200] or (ii) 1.5 times the value of like goods domestically supplied = 1,80,000 [(1,000 × ₹ 120) ×1.5] i.e. 1,80,000. (B) Adjusted Total Turnover = Turnover of zero-rated supply of goods + Turnover in State = 1,80,000 + 3,00,000 [2,500 × ₹ 120] = 4,80,000 (C) Net ITC on inputs and input services = 4,00,000 Refund Amount = 1,80,000 / 4,80,000 × 4,00,000 = 1,50,000

Topics: Refunds

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic