CMA Final · Indirect Tax Laws and Practice · GST Refunds - Inverted Duty Structure and Zero Rated Supplies
For a refund claim under Rule 89(4), the supplier received payments during the relevant period of ₹12,00,000 for completed export of services. It also received in the relevant period ₹3,00,000 as advance for export services not yet completed by the end of the period. Earlier advance of ₹2,00,000 received in a prior period relates to services completed in the relevant period. What is the turnover of zero-rated supply of services?
The turnover is ₹14,00,000. Payments received in the period of ₹15,00,000 including the advance are added to the earlier advance of ₹2,00,000 for services completed in the period, and the ₹3,00,000 advance for services not yet completed is deducted.
- A₹17,00,000
- B₹15,00,000
- C₹14,00,000Correct
- D₹12,00,000
Explanation
Per clause (D): payments received in the period for zero-rated services (₹12,00,000 plus ₹3,00,000 advance, if included in receipts = ₹15,00,000) plus earlier advances for services completed in the period (₹2,00,000) gives ₹17,00,000, less advances for services not completed in the period (₹3,00,000), giving ₹14,00,000. ₹17,00,000 forgets the deduction.
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