Availment of GST Refund of Unutilised ITC

Client Industry :  Advertising Industry

Background :

The client is engaged in providing Advertising services to other companies, with business in the domestic market as well as the international market. The bulk of services provided by the client constitute as Exports. Hence, the Client furnishes a Letter of Undertaking under the GST Act 2017 every year, undertaking to export the services supplied without payment of IGST within the time specified in the LUT. Because of rightful availment of ITC available, but reduced tax liability owing to annual renewal of LUT, the client had accumulated unutilised ITC in its Credit Ledger and has thus approached us to assist in procuring the refund of the unutilised ITC.

Our Approach :

• We reviewed the prevailing provisions of the CGST Act 2017 and the IGST Act 2017, along with the GST Rules, Clarifications and Notifications released by the GST Department w.r.t. GST refund and identified the situations where the department permits such a refund
• We subsequently ascertained the nature of the unutilised ITC and hence eligibility of the application of such GST Refund
• We ensured that all the prerequisite requirements and compliances were being fulfilled by the client and then proceeded to establish documentary evidence w.r.t. the period pertaining to the GST Refund
• We ascertained the amount of ITC Refund to be applied for, as per the various guidelines and formulae enlisted in the CGST Act 2017 and accompanying clarifications w.r.t. ITC Refund released by the department
• We proceeded to prepare various documents and annexures to be included in the final submission to the department
• We conducted liaising with the GST Departments for their final requirements and the conclusion of the process
• We ensured that the final amount receivable as approved by the concerned officer is received by the client

Outcome/Impact :

We successfully obtained the GST Refund on Unutilised ITC, as was reflecting in client’s electronic credit ledger pertaining to the specific period. Thus, the client was able to avail the full benefit of the GST it paid in procurement of inputs.