Dear Sir/Mam,
In new rate of GST input of product is under 5%(20%) and 18%(80%) and my output is also 5%(50%) and 18%(50%). But volume is different.
In this case input is more than output and ITC will accumulate. Can we get refund of ITC under inverted duty structure as input of one of my product is 18% and output is 5% out of of 4-5 products and volume of this product is 50%.
MK
Taxpayer seeks refund under inverted duty when input tax rates exceed output rates; 90% provisional IDS refunds expected November 2025 A taxpayer reports inputs taxed partly at 18% and 5% while outputs are split between 18% and 5% with differing volumes, causing accumulated input tax credit (ITC), and asks whether refund is available under the inverted duty structure. Respondents note the issue is under governmental/CBIC consideration; a simplified IDS refund scheme reportedly provides 90% provisional refunds within seven days and is expected to be operational from 1 November 2025. Another respondent confirms refund eligibility where input tax rates exceed output rates; the taxpayer is advised to await official clarification and FAQs. (AI Summary)
TaxTMI 
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TaxTMI 
