PLEASE EXPLAIN CALCULATIONS OF ADJUSTED TOTAL TURNOVER IN G.S.T REFUND APPLICATION IN EXPORT OF GOODS WITHOUT PAYMENT OF G.S.T. PLEASE ALSO EXPLAIN TURNOVER OF IGST INCLUDES IN ADJUSTED TOTAL TURNOVER

Reply— As per Rule 89(4) of CGST Rules, 2017, refund of input tax credit shall be granted as per the following formula—

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover

“Adjusted Total Turnover” means the sum total of the value of-

(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and

(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding-

(i) the value of exempt supplies other than zero-rated supplies; and

(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.