CLAIMING REFUND OF UNUTILIZED ITC

[SAFETAB LIFESCIENCE]

Dear Experts,

We have more amount of unutilized ITC in Electronic Credit Ledger accumulated over a period from inception of GST. It is almost 4 times of our average monthly ITC receipts and GST payable. Most of our ITC are at 18% and our out put GST is 12%.

The Government is not allowing to include ITC taken on Capital Goods and Services and allowing only inputs ITC bills for refund under inverted duty structure.

As per refund rules and formula, we are eligible only a megar amount and our balance in electronic credit ledger is about 8 times of refund elegible.

What is the way or solution to get refund accumulated ITC due to Capital goods and Service. Please guide us

AI Summary

Company Seeks Refund for Unutilized ITC Under GST; Experts Confirm Restrictions on Services and Capital Goods Refunds. A company is seeking advice on claiming a refund for unutilized Input Tax Credit (ITC) accumulated in its Electronic Credit Ledger under the Goods and Services Tax (GST) framework. The company's ITC, primarily at 18%, exceeds its output GST at 12%, resulting in significant unutilized credit. Current regulations restrict refunds on ITC from capital goods and services, allowing refunds only on inputs under the inverted duty structure. Experts in the forum clarified that ITC on services and capital goods cannot be refunded, referencing specific notifications and rules, and confirming that the law does not permit such refunds.