Change in GST rate under GST reform wef 22.09.25

[mk Jain]

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

AI Summary

Inverted duty structure: simplified refund mechanism for accumulated input tax credit under GST reform, operational soon.
Change in GST rates effective 22.09.25 led to ITC accumulation where inputs taxed at higher rates than outputs. The query concerns refund eligibility under the inverted duty structure for mixed-rate inputs and outputs with differing volumes. Respondents indicated transitional GST-02 matters and FAQs are pending, and that a simplified refund mechanism will allow expedited recovery of the bulk of eligible ITC once procedural modalities are finalised and the scheme is operationalised.