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

Inverted tax structure refund available for accumulated input tax credit on goods, limited excluding input services and capital goods.
Refund claims for accumulation of input tax credit due to an inverted tax structure are available where input tax rates exceed output tax rates on taxable supplies; such refunds are limited to ITC on goods and exclude ITC on input services and capital goods. A retrospective amendment to the refund rule confirms that refund coverage applies only to ITC on goods. Claims must be filed through the prescribed procedure with the jurisdictional office using the electronic credit ledger.