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

7% unutilised ITC from rate cut can be carried forward, refund under inverted duty rules needs statutory conditions A buyer purchased goods taxed at 12% and later sold them after 22 September at 5%, creating 7% unutilised ITC. Forum responses converge: no reversal of the balance ITC is required and it may be carried forward and used against future output tax liabilities. If the unutilised credit accumulates to a large extent because input tax exceeds output tax, a refund may be sought under the inverted duty structure subject to statutory conditions; however, a regulatory clarification indicates refunds for inverted duty apply where input/output rates inherently differ, and mere temporal rate reduction may not automatically qualify.