REFUND OF GST AGAINST INVERTED DUTY STRUCTURE

[SAFETAB LIFESCIENCE]

Dear Experts,

We have obtained refund of accumulated GST against inverted duty structure in March-2018 for the period of earlier months. The refund included ITC credited against goods (inputs) and services. Now we have been instructed to repay the refund received against input services against Notification No. 26/2018 dt. 13.06.2018 retrospective effect from 01.07.2017.

Now, my query is shall reverse the demanded amount from Electronic Credit Ledger today as I have sufficient balance now or I have to pay only in Cash Ledger. I think this reversal of GST is eligible for re-credit of ITC as the Department has not denied the credit and denied only the refund. If I pay cash in Cash Ledger, shall I use the amount for offset of GST payment immediately in the same month itself.

AI Summary

Company Faces GST Refund Repayment Dilemma: Experts Advise Caution, Suggest Appeal Against Retrospective Notification Impact A company involved in a GST refund issue due to an inverted duty structure sought advice on whether to repay a refund received for input services following a retrospective notification. Experts advised that repayment should be made through the Electronic Cash Ledger, not the Credit Ledger, and emphasized obtaining written confirmation from the department before proceeding. Some experts suggested appealing the demand, arguing that retrospective changes cannot affect previously granted refunds. The company received a letter, not a formal notice, from the department requesting repayment, and experts recommended caution, advising against repayment without official documentation.