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TMI BlogREFUND OF ACCUMULATED GST-ITCX X X X Extracts X X X X X X X X Extracts X X X X ..... REFUND OF ACCUMULATED GST-ITC X X X X Extracts X X X X X X X X Extracts X X X X ..... o many services with different (almost all) rates of GST. In the application Statement 1 asks the following. Refund on account of ITC accumulated due to Inverted Tax Structure 1. Turnover of inverted rated supply of Goods 2. Tax payable on such inverted rated supply of goods 3. Adjusted Total Turnover 4. Net Input Tax Credit 5. Maximum refund amount be claimed (1 x 4 / 3) - 2 I didn't u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nderstand the meaning for all four questions. For Example :- My Outward Sales Turnover 1,00,00,000 IGST payable @ 12 % 12,00,000 My Purchase Value 80,00,000 My Input Tax availed at different GST rates 15,00,000 What is my maximum Refund to be claimed ???? Amount eligible for Refund Computed Value as per Statement ?????? Balance in Electronic Credit Ledger 3,00,000 Total Credit Availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15,00,000 Eligible amount (Lowest of all) ???? What is the meaning for "Adjusted Total Turnover" What is the meaning for "Net Input tax credit" Reply By Alkesh Jani: The Reply: Sir, refund on account of inverted duty structure is governed by Rule 89(5) of CGST Rules, 2017 and is as follows :- "(5) In the case of refund on account of inverted duty structure, refund of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input tax credit shall be granted as per the following formula - Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} - tax payable on such inverted rated supply of goods Explanation.- For the purposes of this sub rule, the expressions "Net ITC" and "Adjusted Total turnover" shall have the same meanings as assigned to them in sub-rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4)." Now as per sub-rule (4) NET ITC and Adjusted Total turnover means :- "Net ITC" means input tax credit availed on inputs and input services during the relevant period;" "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , during the relevant period"
"Relevant period" means the period for which the claim has been filed".
The formula for refund is already given at Rule 89(5) of CGST Rules, 2017.
I hope this may clear your query, The Expert may correct me if mistaken. X X X X Extracts X X X X X X X X Extracts X X X X
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