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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.... DEPARTMENT Dated the 05^th September 2022 Subject: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification - reg. Various representations have been received seeking clarification with regard to applicability of para 3.2 of the Circular Issued vide No.798/GST-2 dated 29.05.2020 in cas....
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.... under: "Refund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 of the HGST Act is available where the credit has accumulated on account of rate of tax on inputs being 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 point....
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....ion. 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 section 54 of the HGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax on inputs (same goods) at the sa....
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....lause (ii) of the first proviso to sub-section (3) of section 54 of the HGST 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 notification due to which the rate of tax on output supplies is less than the rate of tax on inputs. In such cases, as the rate of tax of output supply is less th....