Adjusted Total turnover for GST refund
Rule 89 of CGST Rules 2017 deals with Application for refund of tax, interest, penalty, fees or any other amount
In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), refund of input tax credit shall be granted as per the following formula—
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) × Net ITC ÷ Adjusted Total Turnover
Rule 89 (4) of CGST Rules before Amendment
clause (E) of Rule 89(4) was as follow :-
(E) | “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding— |
(a) | the value of exempt supplies other than zero-rated supplies, and | |
(b) | the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or (4B) or both, if any, |
during the relevant period; |
Amendment in Rule 89 (4) of CGST Rules
Central Goods and Services Tax (Eighth Amendment) Rules, 2018 vide NOTIFICATION NO.39/2018-CENTRAL TAX [F.NO.349/58/2017-GST (PT.)], DATED 4-9-2018 :-
In the said rules, in rule 89, in sub-rule (4), for clause (E), the following clause shall be substituted, namely:—
‘(E) “Adjusted Total Turnover” means the sum total of the value of-
(a) | the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and | |
(b) | the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, |
excluding—
(i) | the value of exempt supplies other than zero-rated supplies; and | |
(ii) | the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, |
during the relevant period.’.
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