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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....ng refund under inverted duty structure where the supplier is supplying goods under some concessional notification. Various representations have been received seeking clarification with regard to applicability of para 3.2 of the Circular No. 05/2020-GST dated 04.04.2020 in cases where the supplier is required to supply goods at a lower rate under Concessional Notification issued by the Government....
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....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 points in time, do not get covered under the provisions of clause (ii) of sub-section (3) of section 54 of the RGST Act. It is hereby clarified that refund of accumulated ITC under clause ....
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....ion 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 same point of time, as per some concessional notification issued by the Government providing for lower rate of tax for some specified supplies subject to fulfilment of other conditions. Accordingly, para 3.2 of the Circular No. 05/2020-GST dated 04.04.2020 stands sub....