My client is manufacturing exempted goods. Is he get input tax credit on purchase of raw materials? Or he can get any refund of tax he paid on purchase of raw materials?

Reply— No, ITC of inputs used for making Exempted supply is not eligible for set-off. ITC used for Exempt supplies and personal purpose has to be reversed as per Rule 42 of CGST Rules, 2017.

Refund is also not allowed of accumulated balance of ITC available in credit ledger.

Refund of accumulated input tax credit (available in credit ledger) can be claimed u/s 54 of CGST Act,2017only either in case of export of goods or service without payment of tax or in case of Inverted duty structure.If taxpayer is Not eligible to claim refund of the accumulated ITC, adjust it against outward tax liability if any. In case of Exempted outward supply, No refund of ITC can be claimed.