Circular No. 175/07/2022-GST
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F.No. CBIC-20001/2/2022-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 6
th
July, 2022
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Manner of filing refund of unutilized ITC on account of export of electricity-reg.
Reference has been received from Ministry of Power regarding the problem being faced
by power generating units in filing of refund of unutilised Input Tax Credit (ITC) on account
of export of electricity. It has been represented 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. However, the extant provisions under Rule 89 of CGST 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
CGST Rules, 2017 vide notification No. 14/2022-CT dated 5
th
July, 2022. In order to clarify
various issues and procedure for filing of refund claim pertaining to export of electricity, the
Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby
prescribes the following procedure for filing and processing of refund of unutilised ITC on
account of export of electricity:
2. Filing of refund claim:
2.1 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.
2.2 The applicant would be required to furnish/upload the details contained in Statement
3B (and not in statement 3) of FORM GST RFD-01 (in pdf format), containing the number
and date of the export invoices, details of energy exported, tariff per unit for export of electricity
as per agreement.
Circular No. 175/07/2022-GST
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2.3 The applicant will also be required to upload the copy of statement of scheduled
energy for electricity exported by the Generation Plants (in format attached as Annexure-
I) issued as part of Regional Energy Account by Regional Power Committee Secretariat
(“RPC”) under regulation 2 (1)(nnn) of the CERC (Indian Electricity Grid Code) Regulations,
2010, for the period for which refund has been claimed and the copy of the relevant
agreement(s) detailing the tariff per unit for the electricity exported. The applicant will also
give details of calculation of the refund amount in Statement -3A of FORM GST RFD-01 by
uploading the same in pdf format along with refund application in FORM GST RFD-01.
3. Relevant date for filing of refund:
As per sub-section (1) of section 54 of the CGST Act, 2017, time period of two years
from the relevant date has been specified for filing an application of refund. Electrical energy
is in nature of “goods” under GST and is exported on a continuous basis through the
transmission lines attached to the land. Therefore, it is not possible to determine the specific
date on which a specific unit of electricity passes through the frontier. However, a statement of
scheduled energy for export of electricity by a Generation Plant is issued by Regional Power
Committee RPC Secretariat, as a part of Regional Energy Account (hereinafter referred to as
“REA”) under Regulation 2(1)(nnn) of the Central Electricity Regulatory Commission (Indian
Electricity Grid Code) Regulations, 2010. Accordingly, it is hereby clarified that in case of
export of electricity, the relevant date shall be the last date of the month, in which the electricity
has been exported as per monthly Regional Energy Account (REA) issued by the Regional
Power Committee Secretariat under regulation 2(1)(nnn) of the CERC (Indian Electricity Grid
Code) Regulations, 2010.
4. Processing of refund claim by proper officer
4.1 Rule 89(4) provides for the formula for calculation of refund of unutilised ITC on
account of zero-rated supplies which is reproduced as under:
Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero rated
supply of services) x Net ITC ÷Adjusted Total Turnover
Export of electricity being zero-rated supply, refund of unutilised ITC on account of export of
electricity would also be calculated using the same formula.
4.2 The turnover of export of electricity would be calculated by multiplying the energy
exported during the period of refund with the tariff per unit of electricity, specified in the
agreement. It is clarified that quantum of Scheduled Energy exported, as reflected in the
Regional Energy Account (REA) issued by Regional Power Committee (RPC) Secretariat
for a particular month, will be deemed to be the quantity of electricity exported during
the said month and will be used for calculating the value of zero-rated supply in case of
export of electricity. Such monthly Regional Energy Account (REA) issued by Regional
Power Committee (RPC) Secretariat, as uploaded on the websites of RPC Secretariat,
Circular No. 175/07/2022-GST
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can be downloaded by GST officers as well as the concerned electricity generator for the
purpose of refund under Rule 89(4) of CGST Rules 2019.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 (details of which will have to be provided by the concerned exporter
based on agreed contracted rates).
4.3 It is also mentioned that usually, the quantum of electricity exported as specified in the
statement of scheduled energy exported and on invoice should be same. However, in certain
cases, it might happen that the quantum of electricity exported as mentioned on invoice is
different from the quantum of electricity exported mentioned on the statement of scheduled
energy uploaded with REA on Regional Power Committee website. In such cases, turnover of
export of electricity shall be calculated using the lower of the quantum of electricity exported
mentioned on the statement of scheduled energy exported and that mentioned on the invoice
issued on account of export of electricity.
4.4 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.
4.5 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.
5. Difficulties, if any, in implementation of these instructions may be informed to the
Board (gst-cbec@gov.in).
(Sanjay Mangal)
Principal Commissioner (GST)
Circular No. 175/07/2022-GST
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Annexure-I
Statement of Scheduled Energy for exported electricity by Generation Plants (Using Fuel
except nuclear, gas, domestic linkage coal, mix fuel) for claiming Input Tax Credit
1. Month in which electricity was exported : (mmm/yyyy)
2. Name of Generating Station and Location : (insert name of Generating
station, District, State)
3. Name of Company : (insert name of Company)
4. GSTIN of Company : (insert GSTIN of Company)
5. Installed capacity of Generating Station : (insert Installed capacity in MW)
6. Connection point, State and region : (specify “STU/ISTS” – insert
name of sub-station), state, region
7. Details of the Scheduled Energy during the month:
Domestic
Name of Domestic Entity Scheduled Energy in (MU)
(buyer entity 1) de1
(buyer entity 2) de2
(PX) de3
-- --
(buyerentityN) deN
Subtotal Domestic Sale (A) Sum of (de1+de2+…….+deN)
Cross Border
Country 1_entity1 ee1
Country 2_entity2 ee2
-- --
CountryN_entity3 eeN
Subtotal Export (B) Sum of (ee1+ee2+….+eeN)
Total Scheduled Energy of Generating
Station (C=A+B)
(insert sum of subtotal-A and subtotal-B)
Note: As per Complementary Commercial Mechanism under Section 6.1 (d) of CERC (Indian
Electricity Grid Code) Regulations, 2010; beneficiaries shall pay energy charges for the
scheduled dispatch, in accordance with the relevant contracts/ orders of CERC.
