Refunds - balance in E Ledger

[S RAMAN]

We are paying 28% for our rawmaterials. GST for finished products is only 18% and there is credit in electronic ledger. What we need to know whether we have to apply for refund - if so when ?

AI Summary

Refunds for Unutilized Input Tax Credit Possible Under Section 54 CGST Act When Input Tax Rates Exceed Output Rates. A forum participant inquired about the possibility of obtaining a refund for the credit in their electronic ledger due to paying higher GST on raw materials than on finished products. One respondent suggested that no refund is possible, while another referenced Section 54 of the CGST Act, 2017, indicating that refunds for unutilized input tax credit are permissible under certain conditions, such as when input tax rates exceed output tax rates. Another contributor noted that refunds are generally not allowed due to exclusions, while a final reply confirmed that refunds are possible under specific provisions of the CGST Act.