Refund under Inverted duty structure - Issue with net ITC

[Pushpa Raj]

Sir,

We are one of the manufacturer of pharmaceuticals goods in Pondicherry and we have claimed Refund under Inverted Duty structure for the month of Sep'2018.

Here i have purchased some material in the month of Aug'2017 and filed the return for GSTR-3B on the same month of Aug'2017 but the supplier failed to file return GSTR-1 on Aug'2017 instead they filed on Sep'2018. Now I have taken that ITC for my Sep ‘2018 refund claim (We have not taken that ITC for our previous refund claim due to non-filing for GST return by supplier) and shown in the RFD-01A net input tax credit column. But GST officer said that Aug'17 bill ITC is not eligible for Sep'18 refund Claim and need to be disallow from RFD-01A net ITC. if I said to officer , When supplier file the GSTR-1 , then only it will reflect on GSTR-2A and eligible for Refund claim but they are not accept and asking the notification for that .

Kindly suggest us for the above claim process.

Thanks and Regards,

P.Pushparaj,

Pondicherry .

AI Summary

Pharmaceutical Manufacturer Challenges ITC Denial for August 2017 Citing CGST Act Amendments for September 2018 Refund Claim A manufacturer of pharmaceutical goods in Pondicherry sought advice on claiming a refund under the Inverted Duty Structure for September 2018. The issue arose because the supplier filed the GSTR-1 return late, in September 2018, for goods purchased in August 2017. The GST officer disallowed the input tax credit (ITC) from the refund claim. Respondents advised that ITC for August 2017 can be claimed in September 2018, citing amendments to the CGST Act and relevant government orders. They suggested presenting these documents to the GST officer to resolve the issue, emphasizing that officers cannot reject such claims.