Sir,
Can u please clarify the following in respect of unutilised Credit :
1. we are manufacture of Wind Mills. Wind mill will attract GST @ 5% but when purchase the components, cables and panel etc the rate of GST @ 18% or @28% is applicable . if so, can we claim refund of Excess unutilised credit?
2. When we undertake construction work, We discharge the GST @ 18%. Now my question is, the project is executed under loss and the situation arises the Excess credit available at the end of the project. if so, can we claim refund the unadjusted Credit or the same can be adjusted against out put tax payable on some other contract?
i shall be thankful if you could kindly clarify
Regards
N.Balachandran
.
Windmill Manufacturer Faces GST Refund Challenges Due to Inverted Duty Structure; Excess Credit Adjustment Options Discussed A manufacturer of windmills inquired about claiming refunds for unutilized GST credit due to the higher tax rates on inputs compared to outputs. Responses clarified that refunds for excess credit due to an inverted duty structure are generally allowed, but not when the credit accumulates from higher input tax rates than output. It was noted that excess credit could be adjusted against other contracts, subject to state-specific GST regulations. The discussion highlighted the importance of understanding the conditions under which GST refunds are permissible, particularly in cases involving inverted duty structures or export-related scenarios. (AI Summary)
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