refund of igst paid on machinery imported

[satbir singhwahi]

Sir

Dyeing unit imported machinery and paid IGST on imports. Inputs dyes and chemicals are 18% gst, Whereas Output -dyeing job work is 5% gst. Whether refund under Inverted duty structure allowed for IGST paid on machinery imported.

AI Summary

Can a dyeing unit claim IGST refund on imported machinery under inverted duty structure? Section 54(3)(ii) discussed. A discussion on a forum addressed whether a dyeing unit could claim a refund of IGST paid on imported machinery under the inverted duty structure. One participant cited Section 54(3)(ii) of the CGST Act, 2017, which allows refunds of unutilized input tax credit when input tax rates exceed output tax rates, including IGST on machinery. However, it was noted that certain goods and services listed in government notifications are exceptions to this rule. Another participant highlighted that refunds for capital goods are generally not available, referencing previous discussions and official circulars.