https://www.taxtmi.com/article/detailed?id=16152 An inverted duty structure under the Indian Goods and Services Tax regime arises where the tax rate on inputs, raw materials, intermediate goods or services exceeds the tax rate on the final output. This creates accumulation of unutilized input tax credit, blocks working capital, and may increase production costs for taxable businesses. The GST framework provides a refund mechanism for unutilized input tax credit in such cases, subject to prescribed conditions, refund application procedures, and limits based on eligible credit and the electronic credit ledger. en-us Tue, 07 Apr 2026 07:49:40 +0530 Tue, 07 Apr 2026 07:49:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16152 An inverted duty structure under the Indian Goods and Services Tax regime arises where the tax rate on inputs, raw materials, intermediate goods or services exceeds the tax rate on the final output. This creates accumulation of unutilized input tax credit, blocks working capital, and may increase production costs for taxable businesses. The GST framework provides a refund mechanism for unutilized input tax credit in such cases, subject to prescribed conditions, refund application procedures, and limits based on eligible credit and the electronic credit ledger. Articles Goods and Services Tax - GST Tue, 07 Apr 2026 07:49:40 +0530 https://www.taxtmi.com/article/detailed?id=16152