Inverted Duty Structure Refund

[Ranjith Reddy]

Provision

where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council

Situation

However in our situation there are outward supplies (Rates 5,12,18,28) and inward supplies (Rates 5,12,18,28) which are taxed at multiple rate of taxes and also the output liability is less than inputs(ITC).

Question

Kindly advise in my case the refund under inverted duty structure is valid?

AI Summary

Inverted duty structure refunds available where input tax exceeds output tax, subject to proof and statutory exclusions.
Refunds for inverted duty structure apply where input tax rates exceed output tax rates, excluding nil rated or fully exempt supplies and notified exceptions; claimants must demonstrate that particular outward supplies attracted lower tax than their inputs and may use a CMA/CA certificate to verify accumulated input tax credit for those goods.