Clarification on refund related issues - refund of unutilized input tax credit in cases where credit is accumulated on account of rate of tax of inputs being higher than the rate of tax on output supplies i.e. on account of inverted duty structure.

West Bengal Tax Circular: New Refund Formula and Restrictions Apply to Applications Filed After July 2022.

The circular from the West Bengal Directorate of Commercial Taxes clarifies issues related to the refund of unutilized input tax credit due to an inverted duty structure. It specifies that amendments to the refund calculation formula, effective from July 5, 2022, apply only to refund applications filed on or after that date. Additionally, restrictions on refunds for certain goods under chapters 15 and 27, effective from July 18, 2022, apply only to applications filed on or after that date. Applications filed before these dates will follow previous rules. Difficulties in implementing these instructions should be reported to the Commissioner.