refund of capital goods under inverted duty

[satbir singhwahi]

Sir

department has paid refund for inverted duty structure for july 17, which includes refund on capital goods. How to rectify in books .Pls guide the procedure.

AI Summary

Exploring Refund of Capital Goods Under Inverted Duty Structure: Focus on ITC Reversal and Financial Record Rectification. A discussion on the refund of capital goods under the inverted duty structure was initiated, focusing on how to rectify this in financial records. One participant advised that the inverted duty refund should be claimed only for raw materials used in production, as claiming it on capital goods is risky. To rectify books, if the input tax credit (ITC) is capitalized, reverse the cost of the machine and record refund income equivalent to the depreciation taken on ITC for FY 2017-18. If ITC is availed, reverse the ITC to the extent of the refund received, referencing the electronic credit ledger.