TaxTMI 
TaxTMI 
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??
Refund under Inverted Duty Structure
31 May 2018 
3 Replies 
3675 Views Asked by
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. (AI Summary)
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. (AI Summary)