Dear Sir, If Output Tax Rate of a company is 5 % ( IN Maximum CASE company charges this GST, say 80-90 %). But in some other products it charges GST @ 12% ( In a very few cases 10-20 %)
ITC rate of company is 18% & 12% (IN Maximum CASE) & on some inputs/Inputs services GST rate is 5%.
Query- Whether the company will be eligible to claim Refund under Inverted duty structure in this case ?? Pls explain the provisions in this regard ??
2) Refund of GST paid under RCM on GTA services/ Advocate services is available under Inverted duty structure to a company ?? Pls explain the provisions in this regard ??
Thanks
Provisions in regard to refund towards inverted duty structure are contained in Sec 54 (3)(ii) of the CGST Act, 2017 and that too on account of rate of tax inputs being higher than rate of tax on output supplies. If condition satisfied, refund can be availed. However no refund can be availed in respect of input services here whether paid under FCM or RCM.
It has recently been clarified by CBIC that refund of inverted duty structure not available in case the input and output are same and credit accumulated due to reduction in GST rate.
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