Refund of ITC on purchase of goods other than exporters

[Jasbir Uppal]

Dear professionals,

'Wishing you all a very Happy and prosperous new Year'

I am a manufacturer and the finished goods are coming under the rate of tax @5% but the goods manufactured are charged at the rate lower than the tax paid on the input of goods and services. Now my question is how to claim the refund of the excess ITC showing in the electronic credit ledger..

Please give your valuable views.

Thanks & Regards

J.S.Uppal

Tax Consultant

AI Summary

Manufacturer Can Claim ITC Refund for Goods Under GST Section 54 Due to Inverted Tax Structure Per Rule 89(5) Amendments A manufacturer inquired about claiming a refund for excess Input Tax Credit (ITC) due to an inverted tax structure, where the tax rate on inputs is higher than on outputs. Respondents advised that a refund is possible under Section 54 of the GST Act, specifically for goods, not services or capital goods, due to amendments made to Rule 89(5) effective from June 13, 2018. The manufacturer was instructed to file a claim with their jurisdictional office following the prescribed procedure.