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.

[PAWAN KUMAR]

As per my view you may claim ITC not the refund.

AI Summary

Input Tax Credit can be claimed rather than a refund where works contracts involve differing tax rates and higher-rated inputs. A supplier of works contract services to government and private parties, with outward supplies attracting differing GST rates and inputs largely taxed at a higher rate, asked about entitlement to refund under Section 54(3) of the CGST Act. The advisory response indicates the supplier may claim Input Tax Credit rather than seek a refund under the cited provision.