TaxTMI 
TaxTMI 
REFUND ON WORKS CONTRACT - INVERTED DUTY STRUCTURE
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....EFUND ON WORKS CONTRACT - INVERTED DUTY STRUCTURE<br> Query (Issue) Started By: - RV PERUMAL Dated:- 10-12-2021 Last Reply Date:- 26-9-2022 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>A WORKS CONTRACTOR HAS AN EXCESS BALANCE OF TAX ( INPUT TAX IS MORE THAN HIS OUTPUT TAX BECAUSE OF HIGH CEMENT CONSUMPTION AND STEEL) WHETHER HE IS ELIGIBLE TO GET REFUND FROM THE GST DEPARTMENT. PLEASE G....
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....UIDE ME TO GET THE REFUND Reply By KASTURI SETHI: The Reply: Have you perused Notification No.15/17-CT(R) dated 28.6.17 ? Reply By Shilpi Jain: The Reply: If this output service does not fall in entry 5(b) of sch II he would be eligible for the refund as per formula in rules Reply By PARALIJAYAPALAN ANILKUMAR: The Reply: A lot of confusion and ambiguity exists in this area as to the disentit....
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....lement on the premise of contract service falling under 5 (b) of Schedule-II.. In my view all contract service is not contemplated in the Notification 15/2017. The disqualification would appear to be confined only to contract service resulting in construction of flats and similar buildings which are sold after completion as immovable property by way of receipt of consideration after such completio....
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....n. Reply By Rakesh Garg: The Reply: As per N. No. 15/2017-CT(R) dated 28 June 2017, no refund of unutilized ITC shall be allowed under sec 54(3) of the GST Act, in case of a supply of services specified in sub-item (b) of item 5 of Schedule II of the GST Act. However, works contract is covered in sub-item (a) of item 6 of Schedule II. Since the legislature itself has considered these two categ....
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....ories differently; there is no specific bar to the works contractor in claiming GST refund under the inverted duty structure. Reply By Rakesh Garg: The Reply: You may also refer the following AAR.... DAEWOO-TPL JV - 2019 (7) TMI 1229 [AAR, MAHARASHTRA] Para 5.2...We find that M/S Daewoo-TPL J V, a joint venture between M/s Daewoo Engineering and Construction Company Limited and M/s. Tata Proje....
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....cts Limited is registered under the GST Act and have been awarded the contract from MTHL in the form of works contract. The contract in the nature of services. Execution of construction of large projects such as MTHL Project entails procurement of various inputs, input services and capital goods such as cement, concrete, steel and steel structures, bridge accessories, formworks, plant and equipmen....
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....t, labour, etc. All such goods and services attract GST at varied rates, depending on the nature of such procurement. The ITC paid on the inputs and services are higher than output supply. Therefore, the transaction is covered under Inverted duty structure. In such cases as in the subject case, to avoid the cascading effect, Govt. has allowed relief in the form of Refund of unutilized Input tax Cr....
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....edit Reply By RV PERUMAL: The Reply: THANKS TO ALL FOR YOUR KIND REPLIES<br> Discussion Forum - Knowledge Sharing ....