GST input adjustment

[Arun Aggarwal]

SIR

After the implementation of GST

I will be having GST input balance, as my finished product rate is less than the input GST rates.

What option do I have

1 refund of input lying balance

2 adjusting the same in the products where there is a reverse charge , like buying from Farmers and further sell the same.

Tnx for the reply in advance

Arun

[Himansu Sekhar]

Reverse charge is not output tax. Refer sec 2(82). Utilising credit for payment of tax on reverse charge may not be allowed sec 49(4)

[Arun Aggarwal]

Sir

What about the refund option?

Arun

[DR.MARIAPPAN GOVINDARAJAN]

If input tax credit is in excess in the credit ledger, the only way is to get refund. It cannot be adjusted against future payments. This is my view.

[ajay sharma]

stock input kese le skte hai sir ji

[Himansu Sekhar]

Please wait some days. The option of refund may be clearest because act has a provision. I am not sure

AI Summary

Excess GST input credit: refund is likely the available remedy since credit generally cannot fund reverse charge tax liabilities. A taxpayer with excess GST input tax credit queried whether to seek a refund or adjust the credit against reverse charge liabilities. The discussion indicates reverse charge is not conventional output tax and payment provisions may bar using credit ledger balances for reverse charge, leading practitioners to conclude refund is likely the only available remedy, though some recommend awaiting formal clarification.