Refund on inverted duty structure: capped ITC refund formula clarified alongside Consumer Welfare Fund and final return rules. The amendment substitutes rule 89(5) to prescribe a capped refund formula for inverted duty structure - Maximum Refund Amount = (Turnover of inverted-rated supplies x Net ITC / Adjusted Total Turnover) - tax payable on such supplies - defining Net ITC and retaining the meaning of Adjusted Total Turnover; it mandates capital goods valuation as invoice value reduced by 1/60th per month for ITC reversal, inserts FORM GSTR-10 for final return reporting stock and tax reversal on cancellation, and substitutes rule 97 to establish a Consumer Welfare Fund with audit, Standing Committee governance, powers, applicant eligibility and grant/investment procedures.
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Refund on inverted duty structure: capped ITC refund formula clarified alongside Consumer Welfare Fund and final return rules.
The amendment substitutes rule 89(5) to prescribe a capped refund formula for inverted duty structure - Maximum Refund Amount = (Turnover of inverted-rated supplies x Net ITC / Adjusted Total Turnover) - tax payable on such supplies - defining Net ITC and retaining the meaning of Adjusted Total Turnover; it mandates capital goods valuation as invoice value reduced by 1/60th per month for ITC reversal, inserts FORM GSTR-10 for final return reporting stock and tax reversal on cancellation, and substitutes rule 97 to establish a Consumer Welfare Fund with audit, Standing Committee governance, powers, applicant eligibility and grant/investment procedures.
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