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

Haryana clarifies refunds under inverted duty structure for goods under concessional notifications; input tax credit refunds allowed.

The Haryana Government issued a clarification regarding refunds under the inverted duty structure for suppliers providing goods under concessional notifications. The circular addresses confusion from a previous directive, stating that refunds of accumulated input tax credit (ITC) are permissible when the tax rate on inputs exceeds that on outputs due to concessional rates, provided the goods are not nil-rated or fully exempted. This clarification ensures uniform application of the law across field formations and replaces earlier guidance that did not account for concessional notifications. Any implementation issues should be reported to the department.