Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification

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....ETARY/ COMMISSIONER OF STATE TAX Circular No: 10/2022 - TNGST Dated: 02.09-2022 (PP6/GST/145/2022) Sub: 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 Ministry of Finance, Department of Revenue, Government of India, CBIC, Ne....

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.... in exercise of powers conferred by section 168 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as "TNGST Act"), hereby clarifies the issue as under: 2. Vide para 3.2 of Circular No. 9/2020-TNGST (PP6/35622/2019) dated 20.06.2020, it was clarified that refund on account of inverted duty structure would not be admissible in cases where the input and output sup....

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....same. 3. The matter has been examined. The intent of para 3.2 of Circular No. 9/2020-TNGST (PP6/35622/2019) dated 20.06.2020 was 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 supplie....

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....f first proviso to sub-section (3) of section 54 of the TNGST 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 points in time, do not get covered under the provisions of clause (ii) of....