Regarding balance ITC after 22nd September.

[JIGNESH SITAPARA]

Dear Experts.

A customer buys 12% and then sells after 22 September at 5%, so what should be done with balance ITC 7% ? Can carry forward ?

AI Summary

Excess 7% input tax credit from 12% to 5% sales may be carried forward; refund possible for inverted duty A buyer purchased goods taxed at 12% and later sold them after 22 September at 5%, creating a 7% excess input tax credit (ITC); the guidance states the excess ITC need not be reversed and may be carried forward. If the excess arises from an inverted duty structure, the unutilised ITC may be eligible for a refund, subject to statutory restrictions and procedural conditions under the relevant VAT/CST regime.