Goa Govt Clarifies Refund Eligibility for Inverted Duty Structure Under Concessional Notifications; Refunds Allowed with Specific Conditions.

The circular from the Government of Goa clarifies the refund eligibility under the inverted duty structure when goods are supplied under a concessional notification. It states that refunds of accumulated input tax credit (ITC) are permissible if the input tax rate exceeds the output tax rate due to concessional notifications, provided the output supply is not nil-rated or exempt. This clarification modifies the previous guidance, ensuring that suppliers can claim refunds when the tax rate on inputs is higher than outputs for the same goods, except when specific exclusions apply. The circular aims to ensure consistent application of the Goa GST Act provisions.