Differntial rates

[Arun Aggarwal]

Sir

I am a manufacturer ragistered dealer

with the arrival of the rates of GST, a strange position has occured

The GST rates are much lower than Excise rates prevailing today

Pls advice the treatment of the input balance at the the time of sale under GST of the finished goods stocks , as that can never be adjusted if I carry forward the input even indefinately.

Arun

[DR.MARIAPPAN GOVINDARAJAN]

Section 54(3) of CGST Act, 2017 provides that subject to the provisions of section 54(10) a registered person may refund of any unutilized input tax credit at the end of any tax period. Section 54(10) provides that where any refund is due under section 54(3) to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by any Court, Tribunal or Appellate Authority by the specified date, the proper oficer may withheld payment of refund.

You may claim refund subject to Section 54(10). The excess credit cannot be adjusted against the future payments.

[Arun Aggarwal]

Sir

Anything like anti profiting law applicable here?

[Himansu Sekhar]

Contention of Govindrajan sir will be helpful to you.

[DR.MARIAPPAN GOVINDARAJAN]

The details of anti-profiteering has not yet come.

AI Summary

Refund of unutilized input tax credit is available but may be withheld for return defaults or unpaid tax liabilities.
A registered manufacturer may claim refund of unutilized input tax credit under Section 54(3) of the CGST Act, subject to Section 54(10) which allows withholding of refund where the claimant has defaulted on returns or has outstanding tax, interest or penalty liabilities; excess credit cannot be adjusted against future payments. Anti profiteering details are not yet provided.