REFUND OF ITC -

[SAFETAB LIFESCIENCE]

Dear Experts,

We are going to submit application for refund of ITC accumulated due to inverted duty structure. We are not exporters and we are not having zero/nil rated outward supply.

In computation of of maximum refund to be claimed (statement-1), the net input tax credit, we should exclude ITC on input service and ITC on capital goods (or) we can exclude only ITC on input services alone. We understand from 26.09.2019, refund rules have been amended.

Net input tax credit (4) (₹)

Edit the Net ITC to exclude, the ITC availed on input services and the ITC of refund claimed under Rule 89 (4A) and/ or (4B)

In the application, it shows like this above.

Whether, we can include ITC taken on Capital Goods or Not ???

AI Summary

Clarification on ITC Refund: Exclude Capital Goods in Calculations per Rule 89(5) of CGST Rules, 2017 A company inquired about the refund of Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime due to an inverted duty structure. They sought clarification on whether ITC on capital goods should be excluded when calculating the maximum refund claim, as per the updated refund rules effective from September 26, 2019. An expert responded, referencing Rule 89(5) of the CGST Rules, 2017, which mandates the exclusion of ITC on capital goods for such refund calculations, as established by Notification No.26/18-CT dated June 13, 2018, effective retrospectively from July 1, 2017.