how to Lapse ITC Upto 31.07.2018 on Textiles Business. If We want to apply for refund after 31.07.2018 on Accumulated ITC due to Inverted Duty Structure
Frah Saeed Answered question July 29, 2020
Following clarification has been provided in circular 56/2018 dated 24th August 2018
- In terms of amendment notification, the ITC only on account of inverted duty structure lying in the balance after payment of GST for the month of July (on purchase made on or before the 31st July 2018) shall lapse.
- Determination of ITC amount to be lapse shall be as per formula is given u/s 89(5) of CGST Rules. Such amount shall be determined for the months from July 2017 till July 2018.
- Stock as on 31st July 2018: In case a manufacturer, whose accumulated ITC is liable to lapse in terms of said notification, has certain stock lying in balance as on 31st July 2018, the Input tax credit involved in inputs contained in such stock (including inputs lying as such) may be excluded for determination of net ITC for the purpose of applying the said formula.
- No effect will on balance ITC availed on Input services and capital goods. i.e. Such ITC shall not lapse.
- The Reversal in GSTR-3B: This amount shall, upon self-assessment, be furnished by such person in his GSTR-3B return for the month of August 2018. The amount shall be furnished in column 4B(2) of the return. Verification of accumulated ITC amount so lapsed may be done at the time of filing of the first refund by such person. Therefore detailed calculation sheet in respect of accumulated ITC lapsed shall be prepared by the taxable person and furnished at the time of filing of first refund claim on account of inverted duty structure.
Team Clearmytax.in
Frah Saeed Answered question July 29, 2020