TaxTMI 
TaxTMI 
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 ?
Regarding balance ITC after 22nd September.
12 Sep 2025 
4 Replies 
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Accumulated input tax credit from a rate reduction can be carried forward or used against output tax; refund avenues may apply.
No mandatory reversal of the balance input tax credit is required when a purchase tax rate exceeds the later sale rate; the excess ITC may be carried forward and utilised against future output tax liabilities, and where accumulation is due to a persistent rate differential, refund mechanisms for an inverted duty structure can be considered subject to statutory and administrative conditions. (AI Summary)
No mandatory reversal of the balance input tax credit is required when a purchase tax rate exceeds the later sale rate; the excess ITC may be carried forward and utilised against future output tax liabilities, and where accumulation is due to a persistent rate differential, refund mechanisms for an inverted duty structure can be considered subject to statutory and administrative conditions. (AI Summary)