inverted duty refund on cloth

[satbir singhwahi]

Sir

Is their any change in calculation of inverted duty refund on sale of cloth. Service and capital goods ITC is to be deducted as before.

[Ganeshan Kalyani]

Yes there is a change in the calculation of refund in case of inverted duty structure.

[Amit Agrawal]

Kindly refer to changes made in rule 89 (5) w.e.f. 18.07.2022 vide clause 8 (d) of NOTIFICATION NO. 14/2022–Central Tax dated 05.07.2022.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

Inverted duty refund calculation changed; ITC for services and capital goods remains deductible after rule amendment. Change in calculation of inverted duty refund for supplies of cloth: the refund computation methodology has been amended and the requirement to deduct input tax credit attributable to services and capital goods from the refund entitlement continues to apply; consult the referenced amendment for the revised formula.