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
Claiming GST ITC refund for inverted duty mismatch with mixed-rate supplies and proportional volumes under Section 54 A taxpayer reports post-reform GST inputs taxed at 5% (20% of inputs) and 18% (80%), while outputs are taxed 5% (50%) and 18% (50%) with differing volumes, causing accumulation of input tax credit. The taxpayer asks whether they can claim an ITC refund under the inverted duty structure because one product has 18% input and 5% output and accounts for about half the volume across multiple products. The issue is whether the legal refund entitlement for inverted duty mismatch applies given mixed-rate supplies, proportional volumes, and applicable GST refund provisions. (AI Summary)
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