REFUND OF ACCUMULATED GST-ITC

[SAFETAB LIFESCIENCE]

Dear Experts,

My query is on Refund application RFD-01 A

We are a pharma manufacturer and our outward supply final product is of 12 % GST. We buy about 200 raw materials, packing materials, consumables and availing so many services with different (almost all) rates of GST. In the application Statement 1 asks the following.

Refund on account of ITC accumulated due to Inverted Tax Structure

1. Turnover of inverted rated supply of Goods

2. Tax payable on such inverted rated supply of goods

3. Adjusted Total Turnover

4. Net Input Tax Credit

5. Maximum refund amount be claimed (1 x 4 / 3) - 2

I didn't understand the meaning for all four questions.

For Example :-

My Outward Sales Turnover 1,00,00,000

IGST payable @ 12 % 12,00,000

My Purchase Value 80,00,000

My Input Tax availed at different GST rates 15,00,000

What is my maximum Refund to be claimed ????

Amount eligible for Refund

Computed Value as per Statement ??????

Balance in Electronic Credit Ledger 3,00,000

Total Credit Availed 15,00,000

Eligible amount (Lowest of all) ????

What is the meaning for 'Adjusted Total Turnover'

What is the meaning for 'Net Input tax credit'

AI Summary

Pharma Company Seeks Clarity on GST-ITC Refund Calculation Under Rule 89(5) of CGST Rules 2017 A pharmaceutical manufacturer inquired about calculating the maximum refund for accumulated GST-ITC due to an inverted tax structure using the RFD-01 A application. The query involved understanding terms like 'Adjusted Total Turnover' and 'Net Input Tax Credit' and how these relate to calculating the refund. An expert responded, explaining that the refund is governed by Rule 89(5) of the CGST Rules, 2017, and provided the formula for the maximum refund amount. The explanation clarified that 'Net ITC' refers to the input tax credit availed during the relevant period, while 'Adjusted Total Turnover' excludes exempt supplies.