Gst refund

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CA S.K. Sharma (Querist)
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28 December 2020 Hello everyone, my one of friend is engaged in artificial jewellery business through Amazon, Flipkart.etc. on gst rate is 3% but Amazon and Flipkart charging the heavy commission etc. on sale made by friend through them, on which they charging gst @18% and this gst is claimed as input by my friend against the output liability but after adjustment there is a balance in electronic credit ledger and he wants claim the refund of that, now my question is that what should option I should select in refund application where it is asking select the refund type, i.e. it is 1. REFUND ON ACCOUNT OF ITC ACCUMULATED DUE TO INVERTED TAX STRUCTURE or 2. ANY OTHER (SPECIFY)

CA Ankith Jain

CA Ankith Jain (Expert)
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28 December 2020 As you said, the output liability is 3% and input is 18% and due to which the ECL is getting accumulated. Therefore, you could proceed with Inverted duty structure refund.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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28 December 2020 Go with 1. REFUND ON ACCOUNT OF ITC ACCUMULATED DUE TO INVERTED TAX STRUCTURE

Lekhraj sood

Lekhraj sood (Expert)
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28 December 2020 Inverted duty refund is allowed only for difference in gst rates for goods and not for services.So in my view, you can not claim ITC refund.

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