https://www.taxtmi.com/article/detailed?id=17035 Inverted duty refund under Section 54(3)(ii) is assessed by whether higher tax rates on inputs cause accumulated ITC compared with output supplies, not by whether the principal input is higher-rated. Ancillary inputs, including chemicals, consumables and packing materials, remain relevant inputs where their higher rates create accumulation. Valuation of finished goods is not an independent refund test. Eligible refund must be calculated under Rule 89(5), while circulars cannot impose a principal-input restriction absent from the statutory scheme. en-us Mon, 27 Jul 2026 08:28:56 +0530 Mon, 27 Jul 2026 08:28:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=17035 Inverted duty refund under Section 54(3)(ii) is assessed by whether higher tax rates on inputs cause accumulated ITC compared with output supplies, not by whether the principal input is higher-rated. Ancillary inputs, including chemicals, consumables and packing materials, remain relevant inputs where their higher rates create accumulation. Valuation of finished goods is not an independent refund test. Eligible refund must be calculated under Rule 89(5), while circulars cannot impose a principal-input restriction absent from the statutory scheme. Articles Goods and Services Tax - GST Mon, 27 Jul 2026 08:28:56 +0530 https://www.taxtmi.com/article/detailed?id=17035