Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification

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..... ommissioners, Deputy Commissioners, Assistant Commissioners, State Tax Officers Subject: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification -- reg. Various representations have been received seeking clarification with regard to applicability of para 3.2 of the Circular No. 135/05/2020-GST dated 07. .....

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..... fund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 of the JGST Act is available where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. It is noteworthy that, the input and output being the same in such cases, though attracting different tax rates at different points in time, do not get covered under the .....

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..... n account of inverted structure as per clause (ii) of sub-section (3) of section 54 of the JGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax on inputs (same goods) at the same point of time, as per some concessional notification issued by the Government providing for lower rate of tax for s .....

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..... e 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 rate of tax of output supply is less than the rate of tax on inputs at the same point of time due to supply of goods by the supplier under such concessional notification, the credit accumulated on account of the same is a .....

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