Refund for inverted duty structure: revised input tax credit calculation limits refund after adjusting for turnover. The Rules prescribe a formula for refund of input tax credit in cases of inverted duty structure: compute Maximum Refund Amount by applying the turnover of inverted rated supplies multiplied by Net ITC divided by Adjusted Total Turnover, then deduct the tax payable on such inverted rated supplies. Net ITC excludes credits for which refund is claimed under specified sub rules; Adjusted Total Turnover is as previously defined. The amendment also establishes a Consumer Welfare Fund with a Standing Committee to govern grants, investments, audits, reporting and recovery, and updates valuation and return forms including capital goods depreciation and final cancellation return requirements.
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Refund for inverted duty structure: revised input tax credit calculation limits refund after adjusting for turnover.
The Rules prescribe a formula for refund of input tax credit in cases of inverted duty structure: compute Maximum Refund Amount by applying the turnover of inverted rated supplies multiplied by Net ITC divided by Adjusted Total Turnover, then deduct the tax payable on such inverted rated supplies. Net ITC excludes credits for which refund is claimed under specified sub rules; Adjusted Total Turnover is as previously defined. The amendment also establishes a Consumer Welfare Fund with a Standing Committee to govern grants, investments, audits, reporting and recovery, and updates valuation and return forms including capital goods depreciation and final cancellation return requirements.
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