Sale of Duty Free scrips not relevant for computing ITC Refund: Telangana AAR

In re Kaveri Exports (GST AAR Telangana) Authority for Advance Rulings, Telangana (‘AAR’) in the case of M/s Kaveri Exports “the applicant” has issued a ruling holding that turnover pertaining to the sale of duty credit scrips would not be relevant for computation of the refund of input tax credit. Captioned ruling has been analyzed in this update. A. FACTS OF THE CASE The applicant is a supplier of Indian Origin raw cotton bales. The applicant is in receipt of duty credit e-scrips under the scheme for remission of duties and taxes on exported products (RoDTEP) from the Department of ...