Regarding GST refund for INVERTED DUTY STRUCURE.

[Jignesh Sitapara]

Dear Exprts

I had applied refund under 'ITC accumulated due to Inverted Tax Structure', Now department has raise notice for Declaration under second and third proviso to section 54(3) and Declaration under section 54(3)(ii), Now supplier also exporter and he already taken drawback from Custom. Now How can provide the declaration 54(3).

In this my knowledge serial number 2nd clearly mention that, I have not availed any drawback of Central Excise Duty / Service Tax / Central Tax on goods or services or both, in respect of which this refund claim is being preferred.

Please help me.

[Sadanand Bulbule]

Admittedly you have not availed drawback, you can give the declaration uunder Section 54(3)(ii) and the supplier's drawback does not bar your inverted duty sturcture refund claim.

AI Summary

Inverted duty structure GST refund declaration issue arises where supplier-exporter drawback and refund claim conditions overlap. GST refund under inverted duty structure is raised against a notice requiring declarations under the second and third provisos to section 54(3) and under section 54(3)(ii). The issue concerns whether the refund claimant can furnish the required declaration where the supplier is also an exporter and has already availed customs drawback. The stated concern is that the declaration relating to non-availment of drawback of Central Excise Duty, Service Tax or Central Tax on the goods or services forming the basis of the refund claim appears to be relevant to the claim conditions.