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

Refund of unutilized ITC limited to inputs; input services and capital goods excluded under inverted duty refund rules.
Refund claims for unutilized input tax credit under the inverted duty structure are limited to ITC on inputs; credit attributable to input services and capital goods is excluded. The Net ITC used in the statutory refund formula is defined to include only input goods, and rulemaking and circulars clarify that refunds do not cover tax paid on input services or capital goods.