This circular provides clarification and a detailed procedure for filing and processing refund claims of unutilised input tax credit (ITC) arising from export of electricity, in view of the practical difficulties faced by power generating companies.

It clarifies that although electricity is treated as “goods” under GST, export of electricity does not involve filing of shipping bills or bills of export. To address this gap, amendments have been made in rule 89 of the CGST Rules and a new Statement 3B has been introduced in FORM GST RFD-01. Till the required system changes are implemented on the GST portal, refund applications are to be filed under the “Any Other” category in FORM GST RFD-01, with appropriate remarks and without immediate debit of the electronic credit ledger.

The circular prescribes the documents to be submitted along with the refund application, including export invoices, statement of scheduled energy issued by the Regional Power Committee as part of the Regional Energy Account, and relevant power purchase agreements indicating the tariff. It also clarifies that the relevant date for computing the limitation period of two years for filing the refund claim shall be the last date of the month in which the electricity is exported, as reflected in the monthly Regional Energy Account.

For computation of refund, the circular clarifies that export of electricity qualifies as zero-rated supply and refund is to be calculated using the formula under rule 89(4). The value of export turnover is to be determined based on the quantity of scheduled electricity exported during the month multiplied by the agreed tariff per unit, subject to verification. These clarifications aim to facilitate smooth and uniform processing of refund claims relating to export of electricity.