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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....022 Subject : Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification - Reg. Ref : CBIC Circular No. 173/05/2022-GST, dated the 6th July, 2022 . Various queries have been raised seeking clarification with regard to applicability of para 3.2 of Circular No. Bikri-kar/Vividh-28/2018-1105, dated June 2....
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....ed, as under : "Refund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 of the BGST 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....
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....s, refund of accumulated input tax credit on account of inverted structure as per clause (ii) of sub-section (3) of section 54 of the BGST 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 same point of time, as per some concessional notification issued by the Gover....
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....here 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 than the rate of tax on inputs at the same point of time due to supply of goods by the supplier under such conces....