TaxTMI 
TaxTMI 
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.
refund of igst paid on machinery imported
24 Dec 2017 
6 Replies 
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Refund of unutilised input tax credit: IGST on imported machinery may be refundable under inverted duty, subject to notified exclusions.
Section 54(3)(ii) allows refund of unutilised input tax credit where input tax rates exceed output rates, and this credit includes IGST paid on imported machinery. Eligibility is subject to exclusions in notifications that prohibit refund for specified goods and services; therefore refund entitlement for capital goods must be assessed against those notified exceptions. Refund claims are to be filed electronically on the GST portal, with manual filing permitted where electronic filing is not possible. (AI Summary)
Section 54(3)(ii) allows refund of unutilised input tax credit where input tax rates exceed output rates, and this credit includes IGST paid on imported machinery. Eligibility is subject to exclusions in notifications that prohibit refund for specified goods and services; therefore refund entitlement for capital goods must be assessed against those notified exceptions. Refund claims are to be filed electronically on the GST portal, with manual filing permitted where electronic filing is not possible. (AI Summary)