GST Refund - WCS

[Ethirajan Parthasarathy]

A GST dealer is engaged in executing works contract service to Government and also to private parties. The output tax for govt. contract is 12% and for others it is 18%. Their inputs are taxed at 18% for majority items. Are they entitled to claim refund of Input Tax Credit u/s 54(3) of CGST Act.

AI Summary

GST Dealer in Works Contracts: No ITC Refund for Tax Rate Disparity Under Section 54(3) of CGST Act. A GST dealer involved in works contract services for both government and private entities faces different output tax rates: 12% for government contracts and 18% for others. The dealer's inputs are predominantly taxed at 18%. The query is whether they can claim a refund of Input Tax Credit (ITC) under Section 54(3) of the CGST Act. The response suggests that the dealer may claim ITC but not a refund.