Vivek Jalan
Quick Summary
Consider the situation where the input product was chargeable only at the rate of 5% and assesses supplier mistakenly charged higher rate of 18% GST on input for final product, which is chargeable to lower rate of GST of 5%. Inverted duty refund was denied on the ground that 1. Assesse should al
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FAQ :
Yes, if your vendor mistakenly charged a higher GST rate on an input product than the legally prescribed rate, you may be entitled to a refund under Section 54(3)(ii) of the CGST Act, provided the input tax rate paid is higher than the output tax rate.
The key condition is that the rate of tax charged and paid on the input product must be higher than the rate of tax applicable to your final output product.
No, the tax department cannot deny a refund on the grounds that the supplier wrongly paid a higher GST rate on the input. The law allows for a refund if the input tax rate exceeds the output tax rate.
No, the law does not permit you or the tax department to insist on or advise paying a higher rate of duty than what is prescribed by law.
Section 54(3)(ii) of the CGST Act, 2017, allows an assessee to claim a refund if the rate of tax on the input charged and paid is actually higher than the rate of tax on the output.
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