Refund under Inverted Duty Structure

[Riya Jain]

Hey!!

Mine is a pharmaceutical company wherein tax rate on outward supply is 12%. Also we manufacture on job work basis where outward tax rate is 18% . Nd input tax rate is 18%. So whether i am eligible for inverted duty structure refund??

[CSSANJAY MALHOTRA]

Yes, you are eligible for Inverted structure refund but limited to your turnover from pharma clearances and not in respect of job work revenue.

Inverted structure refund is available where duty on Input is more than Duty on finished product.

[YAGAY andSUN]

Refund on Inverted Duty Structure is allowed.

[Riya Jain]

Sir

In Gst refund form of inverted duty structure , it asks for turnover of inverted supply of goods, in that will only be 12percent will be taken or 12% and 18‰ both turnover. Also if only 12% turnover is to be taken, then it becomes contradictory with gst usermanual where it says u have to input the sales as mentioned in column 3(1) (a) of gstrb . So what do in such case please suggest.

AI Summary

Inverted duty structure refund available where input tax exceeds output tax, limited to turnover from relevant lower-rated supplies. Refund under the inverted duty structure is available where input tax exceeds output tax; in the pharmaceutical example, respondents confirm refund eligibility but restrict the refund to turnover from lower-rated pharmaceutical clearances and exclude job-work receipts. The applicant raises a reporting question on whether the inverted-supply turnover in the refund form should include only lower-rated supplies or both supply categories, noting a possible conflict with sales reporting referenced in GSTRB.