TMI BlogRefund of accumulated ITC due to lower rate of GST on finished goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, One of supplier is supplying goods of HSN 8607 @5% GST but almost all inputs required are @ 18%. Now, his ITC is getting accumulated. Please advise whether refund of such accumulated ITC amount is available keeping in mind that during Pre-GST, there was clear provision for not claiming any set-off of Cenvat credit arises due to above. - Reply By KASTURI SETHI - The Reply = E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtract of FAQs issued by the Board Q 10. Can any taxable person claim refund of any unutilized ITC at the end of the tax period? Ans. No, only the following taxable persons can claim refund of unutilized ITC: (i) Persons undertaking exports (including other zero-rated supplies). [Exception: No refund will be allowed on the goods exported out of India where such goods are subjected to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport duty [ second proviso to Section 54(3 )]; (ii) Credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on outward supplies (other than cases of nil-rated or fully exempted supplies) Q 11. Is there any condition to claim refund of unutilised ITC? Ans. Yes. No refund of input tax credit shall be allowed if the supplier of goods or services claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund of the output tax paid under the IGST Act, - Reply By YAGAY AND SUN - The Reply = Inverted duty structure: Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Council. In such cases also, refund can be applied under Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017. It should be noted that no refund of unutilised input tax credit is allowed in cases where the goods exported out of India are subjected to export duty. Further, no refund of input tax credit is allowed, if the supplier of goods or services or both avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. - Reply By CS SANJAY MALHOTRA - The Reply = No ITC Refund available of Accumulated credit due to inverted duty structure in relation to your product under HSN 8607 except in case of exports out of India or SEZ supplies. Refer to Notification No.5/2017-Integrated Tax (Rate) dated 28.06.07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = I support the views of Sh.CS Sanjay Malhotra, Sir. - Reply By Ganeshan Kalyani - The Reply = Yes, 8607 is mentioned in the Notification refered by Sri Sanjay Sir. Refund of ITC is not allowed. - Refund of accumulated ITC due to lower rate of GST on finished goods - Query Started By: - MohanLal tiwari Dated:- 27-12-2017 Goods and Services Tax - GST - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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