REFUND ON WORKS CONTRACT - INVERTED DUTY STRUCTURE

[RV PERUMAL]

A WORKS CONTRACTOR HAS AN EXCESS BALANCE OF TAX ( INPUT TAX IS MORE THAN HIS OUTPUT TAX BECAUSE OF HIGH CEMENT CONSUMPTION AND STEEL) WHETHER HE IS ELIGIBLE TO GET REFUND FROM THE GST DEPARTMENT. PLEASE GUIDE ME TO GET THE REFUND

AI Summary

GST Refund Eligibility for Works Contracts: Exploring Inverted Duty Structure, Schedule II, and Notification No. 15/2017-CT(R) A works contractor inquired about eligibility for a GST refund due to an inverted duty structure, where input tax exceeds output tax because of high cement and steel consumption. Responses highlighted the complexities of GST rules, particularly regarding works contracts and their classification under Schedule II of the GST Act. Some replies referenced Notification No. 15/2017-CT(R) and discussed whether certain services fall under Schedule II's entry 5(b), which affects refund eligibility. It was noted that works contracts are treated differently, potentially allowing refunds. An example involving a joint venture was cited to illustrate the refund process under similar circumstances.