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

Refund of input tax credit under inverted duty structure limited by formula, net ITC proportion minus tax payable.
Maximum refund is computed as (turnover of inverted rated supplies x Net ITC / Adjusted Total Turnover) minus tax payable on such inverted rated supplies. Net ITC means input tax credit availed on inputs during the relevant period other than credit availed for which refund is claimed under specified sub-rules; Adjusted Total Turnover has the same meaning assigned in the rule.