Dear Sir(s)
A Trading company say Mr. X (deals in paper, paper machines etc.) purchased Kraft Paper (IGST @12%) from paper manufacturing company in India.
Thereafter Mr. X sold the goods to Mr. Y (merchant exporter) under not. no. 41/2017 Integrated Tax (Rate) Dt. 23.10.2017 charging 0.10 % IGST. Now the merchant exporter Mr. Y export the goods out of India.
My question here is that how Mr. X can claim the IGST which is unutilized.
thanks
CA Devkant Agarwal
Trading Company Can Claim IGST Refund Under Inverted Duty Structure for Kraft Paper Sales to Merchant Exporter A trading company, Mr. X, purchased Kraft Paper with a 12% IGST from a paper manufacturer in India and sold it to Mr. Y, a merchant exporter, at 0.10% IGST under a specific notification. Mr. X inquired about claiming the unutilized IGST. Responses suggested that Mr. X can claim a refund under the Inverted Duty Structure Scheme, allowing for a refund of the difference between the input and output tax rates (11.90%). Conditions include ensuring goods are exported within 90 days and proper documentation. Alternatively, charging the full 12% GST and letting Mr. Y claim the refund was advised. (AI Summary)