Dear Sir,
I am a tractor manufacturer. I purchase various parts and engine by paying itc at 18%. But tractor is taxable at 12%.
Can I accumulate and carry forward excess itc in my Electronic Credit Ledger.
Can I cliam excess itc under inverted duty structure as my out put tax is always less than itc.
Tractor Manufacturer Eligible for Refund of Unutilized ITC Under Section 54(3) CGST Act; Input Services Dispute Ongoing A tractor manufacturer inquires about claiming excess Input Tax Credit (ITC) under the inverted duty structure, where inputs are taxed at 18% and tractors at 12%. Respondents confirm that a refund of unutilized ITC is possible under section 54(3) of the CGST Act, 2017, but note ongoing disputes regarding eligibility for input services refunds. They advise including input services in claims to avoid future time-bar issues if judicial resolutions allow such refunds. It is clarified that refunds are not available for transitional credit under this structure, as per CBIC guidelines. (AI Summary)
TaxTMI 
TaxTMI 
