TaxTMI 
TaxTMI 
Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification
X X X X Extracts X X X X
X X X X Extracts X X X X
....DESH::VIJAYAWADA PRESENT: SRI CH.Rajeshwara Reddy, I.R.S., CCST's Ref. CIRCULAR Computer No.1795600 File No.REV03-12039/129/2022-DC- CCT 29/07/2022 Subject: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification - reg. Ref : Circular No.173/05/2022-GST, dated 06-07-2022 issued by the Princi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....: 2. Vide para 3.2 of CCST Circular No. 11/2020(State), dated 08.09.2020 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 CCST Circular No. 11/2020(State), dated 08.09.2020 is reproduced, as under: " Refund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r 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 on account of inverted structure as per clause (ii) of sub-section (3) of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....teworthy 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 subsection (3) of section 54 of the APGST Act. 3.3 There may however, be cases where though inputs and output goods are same but the output supplies are made under a concessional ....