26 October 2017
I am importing components for lighting and paying 28% IGST.
The end product is under 12% IGST.
Suppose my cost is 100.00
I add 10% profit so sale price is 110.00
I collect 12% on 110.00 is 13.20
Every month my 28-13.20=14..80 will be with government in from of excess IGST.
My question is, will government give me refund or can I use this amount to pay IGST for payment against IGST to be paid for coming imports?
Will government give interest on it as it is my money?
26 October 2017
Hi Mahesh,
Govt will not give any Refund for IMPORTS for exports govt is giving Refund
And even it will not pay any interest.
Only thing you can do is set-off &carry forward for future months.
IGST input can be used for payment of First IGST output & if there is any balance you can use it for payment of CGST then SGST.
so IGST input can be used for payment of output IGST,CGST,SGST
26 October 2017
Your product fall under inverted rate of duty. Refund claim can be made unutilized input tax credit. Interest will be payable if not refunded within 60 days from the date of receipt of application. You can refer Section 54 of CGST act.
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