untilised input credit under GST

[N Balachandran]

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

.

AI Summary

Inverted duty structure permits refund of accumulated input tax credit while other causes of accumulation are nonrefundable.
Refund of unutilised input tax credit is available where credit accumulates due to an inverted duty structure or zero rated supplies/exports; otherwise accumulated credit is not refundable and effectively increases production cost. The electronic credit ledger may be used to adjust available ITC against other output tax liabilities of the same GSTIN without strict one to one correlation, but refunds are confined to specified grounds and may lapse in certain supply valuation scenarios.