TMI BlogClarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notificationX X X X Extracts X X X X X X X X Extracts X X X X ..... and Customs GST Policy Wing New Delhi, Dated the 6th 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: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted duty structure would not be admissible in cases where the input and output supply are same. Para 3.2 of Circular No. 135/05/2020-GST dated 31.03.2020 is reproduced, as under: Refund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 of the CGST Act is available where the credit has accumulated on account of rate of tax on inputs being higher than the rate of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods) at the same point of time due to supply of goods by the supplier under such concessional notification. 4. Therefore, it is clarified that in such cases, refund of accumulated input tax credit on account of inverted structure as per clause (ii) of sub-section (3) of section 54 of the CGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in time, do not get covered under the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the CGST Act. 3.3 There may however, be cases where though inputs and output goods are same but the output supplies are made under a concessional notification due to which the rate of tax on output supplies is less than the rate of tax on inputs. In such cases, as the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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