Refund under Inverted Tax Structure in case of multiple business

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....efund under Inverted Tax Structure in case of multiple business<br> Query (Issue) Started By: - Sumeet Tholle Dated:- 28-2-2022 Last Reply Date:- 2-3-2022 Goods and Services Tax - GST<br>Got 8 Replies<br>GST<br>Dear Sir, We are having 2 business(activities) under one GSTIN. In one trading activity input & output rate are same but in other manufacturing activity, input rate is 28% (mollasses) & o....

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....utput rate is 5% and hence there is accumulation of ITC. Now, we filed refund under Inverted Tax Structure and we considered &quot;Net ITC&quot; as ITC of inputs only of both activities. But the officer asked to remove ITC of inputs of trading activity but considering &quot;Adjusted Total Turnover&quot; as Turnover of both activity i.e. trading as well as manufacturing. As per formula, refund=(T....

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....urnover of inverted rated supply of goods & services/Adjusted Total Turnover )*Net ITC-Tax payable on inverted rated supply of goods & Services Here the Net ITC means ITC availed on inputs i.e ITC of inputs of that GSTIN. As per formula, our claim is correct. Request for expert guidance. Thanks. Reply By KASTURI SETHI: The Reply: Have you filed refund claim in the office of CGST or SGST ? R....

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....eply By Sumeet Tholle: The Reply: Sir, SGST, Maharashtra Reply By KASTURI SETHI: The Reply: Where rate of input and rate of output (the finished goods) are the same, the turnover of that unit has no correlation with the refund claim. Hence I agree with your view. Reply By Sumeet Tholle: The Reply: Thanks Sir. Reply By Sumeet Tholle: The Reply: Thanks Sir. Sir, but then this will be agai....

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....nst that formula. Net ITC & Agg. Turnover will not be as per formula. Reply By KASTURI SETHI: The Reply: Dear Sh.Sumot Tholle, &quot;As per formula, our claim is correct.&quot; What is the basis of this expression mentioned in your query by you ? Pl. let me know. Reply By KASTURI SETHI: The Reply: It is a technical issue. Relief is possible only through litigation. Reply By Shilpi Jain: ....

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....The Reply: The claim of the officer is illogical. If the ITC of that business is not considered then the turnover should also not be regarded. Also rule 89(5) does not restrict taking the ITC of the trading activity for the inverted duty refund. In such case the turnover should also be considered in the denominator<br> Discussion Forum - Knowledge Sharing ....