TaxTMI 
TaxTMI 
Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification
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....nal/Jt. Commissioner of State Taxes and Excise, (South Zone, North Zone, Central Zone), Shimla, Palampur, Mandi, H.P. 2. The Joint Commissioner of State Taxes and Excise, Enforcement Zone, (Central Zone, North Zone, South Zone), Una, Palampur, Parwanoo, H.P. 3. The Dy. Commissioner of State Taxes and Excise, Shimla, Solan, Una, Sirmour, Bilaspur, Hamirpur, Mandi, Kullu, Chamba, Kangra, Revenue....
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.... and Services Tax Act, 2017 (hereinafter referred to as "HPGST Act"), the issues are clarified as under. 2. Vide para 3.2 of Circular No. 135/05/2020-GST dated 20.07.2020, it was clarified that refund on account of inverted duty structure would not be admissible in cases where the input and output supply are same. Para 3.2 of Circular No. 135/05/2020-GST dated 20.07.2020 is reproduced, as under: ....
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....s not to cover those cases where the supplier is making supply of goods under a concessional notification and the rate of tax of output supply is less than the rate of tax on input supply (of the same goods) at the same point of time due to supply of goods by the supplier under such concessional notification. 4. Therefore, it is clarified that in such cases, refund of accumulated input tax credit....
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....eing higher than the rate of tax on output supplies. It is noteworthy that, the input and output being the same in such cases, though attracting different tax rates at different points in time, do not get covered under the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the HPGST Act. 3.3 There may however, be cases where though inputs and outputgoods are same ....