REFUND OF CREDIT LEDGER CLAIM DUE TO INVERTED DUTY STRUCTURE

[SAFETAB LIFESCIENCE]

Dear Experts,

We have applied and refund received of ITC availed/accumulated in Electronic Credit Ledger for the periods

of Aug-2017, Sep-2017, Nov-2017 and Dec-2017 in Feb/March, 2018.

Now, GST officials informed us that the refund received by us against INPUT SERVICES is not elgible for refund as per Notification No. 26/2018 dt. 13.06.2018 retrospectively effect from 01.07.2017.

Is it true. What does 26/2018 says ???

AI Summary

Company Denied GST Refund for Input Services Due to Inverted Duty Structure; Consider Appeal if Financially Affected A company inquired about the eligibility of a refund received for input tax credit (ITC) under the Goods and Services Tax (GST) due to an inverted duty structure. They were informed by GST officials that the refund for input services is not eligible as per Notification No. 26/2018, effective retrospectively from July 1, 2017. An expert confirmed that such refunds are not allowed and mentioned that this issue has been challenged in the Gujarat High Court, suggesting an appeal if the financial impact is significant. Another expert explained the notification's details and advised verifying its applicability to the company's situation.