Refund under Inverted duty structure - Issue with net ITC

[Asked by Guest]

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

Input tax credit reflected in GSTR-3B counts as net ITC for refund despite supplier's delayed filings.
ITC entered into the electronic credit ledger by filing FORM GSTR-3B in the refund period constitutes net ITC for refund computation; delayed supplier filings do not permit exclusion of such ITC from the RFD-01A net ITC when the taxpayer has availed the credit in the relevant period.