Refund of accumulated ITC due to lower rate of GST on finished goods

[MohanLal tiwari]

Dear Experts,

One of supplier is supplying goods of HSN 8607 @5% GST but almost all inputs required are @ 18%. Now, his ITC is getting accumulated. Please advise whether refund of such accumulated ITC amount is available keeping in mind that during Pre-GST, there was clear provision for not claiming any set-off of Cenvat credit arises due to above.

AI Summary

Inverted duty structure: refund of accumulated input tax credit permitted where input tax exceeds output tax, subject to specified exclusions.
Refund of accumulated input tax credit is permitted for an inverted duty structure-where input tax rates exceed output rates-subject to refund procedure and exclusions. Refunds are available for zero-rated supplies and credit accumulation from higher input rates, but are barred where exported goods attract export duty, where the supplier claims refund of output tax under IGST, where drawback or IGST refund is claimed, or where a notification expressly excludes particular goods.