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.
