Delhi Issues Manner of filing of unutilized ITC on account of Export of Electricity [Read Circular]

The GST department of Delhi Government has issued a circular prescribing the manner of filing of unutilized ITC on account of export of electricity.

The department has received requests stating 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.

The extant provisions under Rule 89 of DGST 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. Accordingly, a clause (ba) has been inserted in sub-rule (2) of rule 89 and a Statement 3B has been inserted in FORM GST RFD-01 of the DGST Rules, 2017 vide notification No. 14/2022-ST dated 17th October, 2022.

In order to clarify various issues and procedure for filing of refund claim pertaining to export of electricity, the Board, prescribed that 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, 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 the copy of statement if scheduled energy for electricity exported by the Generation Plants issued as part of Regional Energy Account by Regional Power Committee Secretariat ("RPC").

The calculation of the value of the exports of electricity during the month, can be done based on the quantity of scheduled electricity exported during the month by the exporter (as detailed in the REA for the month)and the tariff rate per unit.

Adjusted Total Turnover shall be calculated as per the clause (E) of sub-rule (4) of rule 89. However, as electricity has been wholly exempted from the levy of GST, therefore, as per the definition of adjusted total turnover provided at clause (E) of the, sub-rule (4) of rule 89, the turnover of. electricity supplied domestically would be excluded while calculating the adjusted total turnover. The proper officer shall invariably verify that no ITC has been availed on the inputs and inputs services utilised in making domestic supply of electricity.

As per the circular, the proper officer shall calculate the admissible refund amount as per the formula provided under rule 89(4) and as per the clarification furnished above. Further, upon scrutiny of the application for completeness and eligibility, if the proper officer is satisfied that the whole or any part of the amount claimed is payable as refund, he shall request the applicant, in writing, if required, to debit the said amount from the electronic credit ledger through FORM GST DRC-03. Once the proof of such debit is received by the proper officer, he shall proceed to issue the refund order in FORM GST RFD-06 and the payment order in FORM GST RFD-05.

To Read the full text of the Circular CLICK HERE

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