We are manufacturer and trader.
For mfg, we buy input goods(5%) and output is taxable (5%) and exempt.
Due to rule 42, we do itc reversal also.
We are accumulating huge inputs and even after reversal and setoff for sales, ITC is left.
Can we claim ITC refund .? What will be procedure and under which section we can claim
GST ITC Refund Not Possible Due to Equal Input-Output Tax Rates; Consider Future Utilization or Consult CA A manufacturer and trader inquired about claiming a GST Input Tax Credit (ITC) refund due to accumulating credits, even after reversals and setoffs. Experts responded that no refund provision exists under the current circumstances, as the input and output tax rates are the same. They advised examining the accumulation issue, suggesting it might result from incorrect value addition or reversal amounts. It was noted that the ITC amount in question, approximately one lakh rupees, is not significant and can be utilized in future business activities. Consulting a Chartered Accountant was recommended for a thorough review. (AI Summary)
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