CBIC notifies the procedure for filing refund of unutilized ITC on account of export of electricity.

The Central Board of Indirect Taxes and Customs on 6th July 2022, has notified the procedure for filing refund of unutilized ITC on account of export of electricity. It has been represented that though electricity is classified as “goods” in GST, there is no requirement for filing of Shipping Bill/ Bill of Export in respect of export of electricity. However, the extant provisions under Rule 89 of CGST Rules, 2017 provided for requirement of furnishing the details of shipping bill/ bill of export in respect of such refund of unutilised ITC in respect of export of goods.

In order to clarify various issues and procedures for filing of refund claim pertaining to export of electricity, the Board,  in  exercise  of  its  powers conferred  by  section  168  (1)  of  the  CGST  Act,  hereby prescribes  the  following  procedure  for  filing  and  processing  of  refund  of unutilized ITC  on account of export of electricity:

Till the  time  necessary  changes  are carried  out  on  the  portal,  the  applicant  would  be required to file the application for refund under “Any Other” category electronically in FORM GST  RFD-01, on  the  portal .In  remark  column  of  the  application,  the  taxpayer  would  enter “Export of electricity-without payment of tax (accumulated ITC)”. At this stage, the applicant is not required to make any debit from the electronic credit ledger.

The applicant would be required to furnish/upload the details contained in Statement 3B (and not in statement 3) of FORM GST RFD-01(in pdf format), containing the number and date of the export invoices, details of energy exported, tariff per unit for export of electricity as per agreement. The applicant will also be required to upload a copy  of statement of scheduled energy for electricity exported by the Generation Plants,  issued as  part  of  Regional  Energy  Account  by  Regional  Power  Committee  Secretariat.

Rule  89(4) of GST Rules, 2017   provides  for  the  formula  for  calculation  of  refund  of unutilized ITC  on account of zero-rated supplies which is reproduced as under:

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover.

Export of electricity being zero-rated supply, refund of unutilized ITC on account of export of electricity would also be calculated using the same formula.

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