Refund of ITC transferred through ITC 02

[Rajesh Kumar]

Sir / madam

Please guide, is refund claim of unutilized ITC available which was transferred through ITC-02 to which party cannot claim and utilise due to GST rates on inputs materials are higher than the outward ?

if yes, what are the terms and conditions as per provisions?

AI Summary

Refund of transferred input tax credit may be available where transferee cannot utilise credit due to tax rate mismatch.
Refund claims for unutilized input tax credit transferred via ITC-02 relate to credit moved on account of sale, merger, demerger, amalgamation, lease or transfer of a business; refund availability depends on the transferred ITC remaining unutilized because outward supplies attract lower tax than inputs, and claimants must satisfy the ITC-02 procedural requirements while noting that refund may be difficult where no higher-rated supplies exist for utilisation.