Section 89(4) in The Central Goods and Services Tax Rules, 2017
(4)[ In the case of zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 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 TurnoverWhere, -(A)"Refund amount" means the maximum refund that is admissible;(B)"Net ITC" means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both;(C)[ "Turnover of zero-rated supply of goods" means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less, other than the turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both;](D)"Turnover of zero-rated supply of services" means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking, calculated in the following manner, namely:-Zero-rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero-rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period;(E)[ "Adjusted Total Turnover" means the sum total of the value of- [Substituted by Notification No. G.S.R. 831(E), dated 4.9.2018 (w.e.f. 19.6.2017).](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-zerorated 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.] [Substituted by Notification No. G.S.R. 1602(E), dated 29.12.2017 (w.e.f. 19.6.2017).](F)"Relevant period" means the period for which the claim has been filed.
