TaxTMI 
TaxTMI 
Regarding GST Refund of Inverted Duty.
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....egarding GST Refund of Inverted Duty.<br> Query (Issue) Started By: - Jignesh Sitapara Dated:- 6-5-2026 Last Reply Date:- 20-5-2026 VAT + CST<br>Got 5 Replies<br>VAT / Sales Tax<br>Dear Experter, I wish to apply for refund of "INVERTED DUTY STRUCTURE". Now the Export turnover consider in Adjusted Total Turnover. Please help me. Reply By Sadanand Bulbule: The Reply: In terms of formula ....
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....under Rule 89(5) of the CGST Rules, export turnover is also included in the " Adjusted Total Turnover". Reply By Jignesh Sitapara: The Reply: Thank you so much.... Reply By YAGAY andSUN: The Reply: Under the GST refund mechanism for Inverted Duty Structure (IDS), refund of accumulated Input Tax Credit (ITC) is governed by Section 54(3) of the CGST Act, 2017 read with Rule 89(5) of the CG....
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....ST Rules, 2017. A key component in the formula for computation of admissible refund is the "Adjusted Total Turnover". As per Rule 89(4) and 89(5), "Adjusted Total Turnover" is defined to include the value of all outward supplies in a State or Union territory, including zero-rated supplies, but excluding inward supplies on which tax is payable by a recipient under reverse charge. Importantly, "z....
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....ero-rated supply" under Section 16 of the IGST Act includes export of goods or services. Therefore, export turnover is mandatorily included in "Adjusted Total Turnover" for the purpose of computing refund under IDS. The legal rationale is that exports, being zero-rated supplies, form part of aggregate outward supplies and cannot be excluded while determining the proportionate refund of accumula....
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....ted ITC. Consequently, while "Turnover of inverted rated supply of goods" is restricted to domestic supplies subjected to inverted tax structure, "Adjusted Total Turnover" is a broader denominator that includes exports, domestic taxable supplies, and other eligible outward supplies. This inclusion ensures uniformity in apportionment and prevents distortion in refund computation. Thus, the in....
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....clusion of export turnover in Adjusted Total Turnover is legally mandated under Rule 89 and consistently upheld in GST refund computation methodology, ensuring proportional allocation of ITC in line with statutory framework. Reply By Shilpi Jain: The Reply: If export turnover is also inverted then include. Reply By Simha: The Reply: You need to include in Adjusted total turnover as per R....
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....ule 89(5) of CGST rules and exclude exempted turnover<br> Discussion Forum - Knowledge Sharing ....