Q. Eligibility of Refund of Input tax credit on capital goods by a registered person under GST Engaged exclusively in Zero rated supplies for Export of Services

Question

Eligibility of Refund of Input tax credit on capital goods by a registered person under GST Engaged exclusively in Zero rated supplies for Export of Services

Answer 1

A registered person engaged exclusively in zero-rated supplies for the export of services is eligible to claim a refund of the unutilized input tax credit on capital goods, subject to fulfilling the conditions and following the procedure specified under the GST law. This is in line with the objective of GST to avoid cascading of taxes and to ensure that exports are zero-rated, thereby not contributing to the cost of exports.

Regards, CA. Praveen Sharma

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