Refund of Unutilized ITC under Inverted Duty Structure (IDS) for Solar EPC Companies

[DS Pal]

Dear sir,

We are a Solar EPC Company engaged in setting up of Solar Power Plant (SPGS System). The Solar power plant is taxable at effective rate of 13.80% i.e. (18% on Supply of Services (30%) and 12% on Supply of Goods (70%)). However, we procure our raw materials such as cables, structures etc at 18% due to which ITC remains unutilized in our E Credit Ledger.

Can we claim refund of unutilized ITC under Inverted Duty Structure?

If Yes, Please quote the reference of law or judgements. 

AI Summary

Refund of unutilized ITC under inverted duty structure permits eligible suppliers to claim statutory refunds, subject to exclusions.
Refund of unutilized ITC is available where an inverted duty structure causes credit to remain unutilized in the electronic ledger; solar EPC companies procuring inputs at higher rates than the effective output tax may claim refund under the statutory refund provision. Exclusions for particular goods or services may apply under refund rules and administrative guidance, and judicial decisions have been cited supporting refund entitlement in IDS situations.