Refund arising due to Inverted Duty Structure

[Chandresh Gala]

Kindly guide us for the matter:

ITC accumulated through Inverted Duty Structure. Already filed for the refund application.

But now the scenario is after filing refund application IGST & CGST credit ledger is NIL.

Now major chunk of amount is lying in SGST credit ledger.

Kindly guide as to is there any way out to claim refund for the SGST amount.

AI Summary

Inverted duty structure refunds may include eligible SGST credit, but entitlement requires period-wise formula reconciliation and proper ledger debit verification.
Inverted duty structure refunds may cover eligible unutilised SGST input tax credit under section 54(3) and Rule 89(5), without conversion into IGST or CGST. However, an SGST ledger balance is not automatically refundable: entitlement must be calculated period-wise under the prescribed formula after deducting refunds already claimed. For pending RFD-01 applications, verify tax-head-wise ledger debits, refund amounts and processing status before filing another claim, withdrawing or refiling. Claims for subsequent periods may include eligible SGST, while duplicate claims for the same period may face procedural restrictions.