Is ITC of items used for machines i.e.Capital goods are eligible for ITC Inverted refund ?ITC re

[Rajesh Kumar]

I want to know that the inputs used for machines are also claimable as inverted refund.

AI Summary

Eligibility for ITC Refund on Machine Inputs Under Inverted Duty Structure Clarified; Conditions Apply Per GST Circular. A discussion on a forum addresses whether inputs used in machines, categorized as capital goods, are eligible for an Input Tax Credit (ITC) refund under an inverted duty structure. The initial response clarifies that refunds for tax paid on input services and capital goods are not permitted according to the CGST Act and related rules. However, further clarification indicates that if the conditions in specific paragraphs of a GST circular are met, inputs used in machines, like spare parts and oil, may be eligible for ITC inverted refund claims. The discussion concludes with an assurance that the issue is clarified.