Itc

This query is : Resolved 
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A business packing mustard oil into small tins, taxed at 5% GST, purchased packing materials at 18% GST. They are asking if they can claim a refund of the 13% difference. The advice given is yes, they can claim Input Tax Credit (ITC) on the packing materials. This ITC can be adjusted against their GST liability, and they can also file for a refund of accumulated ITC under the inverted duty structure.

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(Querist)
08 October 2020 we are packer of mustered oil from drum to small tin which is taxable at the rate of 5% under gst but we has purchased packing material with 18% rate can i claim refund of gst of 13% from governmet
13% - (18%-5%)
kindly suggest me its very urgent
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 October 2020 You can claim ITC on paking material. Such ITC gets adjusted in your margin on sale.
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Lekhraj sood

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Lekhraj sood (Expert)
08 October 2020 Yes, you can file refund of accumulated ITC under section 54(3) as refund under inverted duty structure.
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AMAR KANT

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AMAR KANT (Querist)
09 October 2020 THANK YOU SO MUCH
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