REFUND ON INVERTED DUTY STRUCTURE

[Rajesh kumar]

R/S

ONE PERSON REGISTER UNDER GST. HIS SALE MANUFACTURE PRODUCT FALL UNDER @ 12% BUT ON INPUT GOODS RATE IS 12 AND 18%. SO IN THIS CASE HOW I CALCULATE OF AMOUNT FOR REFUND UNDER INVERTED DUTY . PLS HELP

AI Summary

Understanding GST Refunds: Rule 89(5) Explained for Inverted Duty Structure with 12% and 18% Tax Rates A user inquired about calculating a refund under the inverted duty structure for a product with a 12% sales tax rate and input goods taxed at 12% and 18% under GST. The response referenced Rule 89(5) of the CGST Rules, 2017, which provides a formula for calculating the maximum refund amount. This formula involves the turnover of inverted rated supply, net input tax credit (ITC), and adjusted total turnover, subtracting the tax payable on the inverted rated supply. The explanation clarified terms like net ITC and adjusted total turnover, guiding the user on how to compute the refund.