https://www.taxtmi.com/forum/issue?id=114037 Refunds under inverted duty should relate to raw materials; refunding ITC on capital goods is risky. If ITC was capitalised, reverse the capitalised cost and recognise refund income to the extent of depreciation claimed on that ITC. If ITC was availed, reverse the Input Tax Credit to the extent of the refund received (per the electronic credit ledger on the refund application date) and ensure reconciliation if the reversal entry was not recorded. en-us Mon, 13 Aug 2018 12:53:43 +0530 Thu, 23 Jan 2025 15:55:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=114037 Refunds under inverted duty should relate to raw materials; refunding ITC on capital goods is risky. If ITC was capitalised, reverse the capitalised cost and recognise refund income to the extent of depreciation claimed on that ITC. If ITC was availed, reverse the Input Tax Credit to the extent of the refund received (per the electronic credit ledger on the refund application date) and ensure reconciliation if the reversal entry was not recorded. Discussion-Forum GST Mon, 13 Aug 2018 12:53:43 +0530 https://www.taxtmi.com/forum/issue?id=114037