REFUND ON GST INADVERTENT DUTY STRUCTURE

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This query is : Resolved

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This discussion clarifies how to claim refunds on GST paid due to inadvertent duty structures. While GST paid on inputs can be refunded, input services and capital goods generally aren't eligible for direct refund, though credit can be carried forward. Crucially, if you claim a drawback under customs and GST, you won't get an IGST refund. However, claiming only the customs drawback allows for an IGST refund.

S. RAVICHANDRAN

S. RAVICHANDRAN (Querist)

15 April 2020 SIR

PLEASE LET ME KNOW THE CLAIM REFUND ON GST INADVERTENT DUTY STRUCTURE, THE GST PAID ON SERVICES ARE ELIGIBLE TO CLAIM REFUND.
AND ALSO KNOW EXPORT OF GOODS WITH IGST AND GET REFUND, GET CREDITED THE DRAWBACK, IN THIS CIRCUMSTANCES, THE EXCESS AVAILABLE ITC IN THE ECL CAN APPLY REFUND ON GST INADVERTENT DUTY STRUCTURE
EXAMPLE : INPUTS RATE OF GST @ 18% OUTPUTS RATE OF IGST @ 5% EXPORTS
PLEASE CLARIFY
SR

Nilesh

Nilesh (Expert)

21 April 2020 You can claim as refund of inputs. However as per provision refund of Input Services and capital goods- refund would not available. You can keep credit in books and you may used in future liabality

CA Ankit Kumawat

CA Ankit Kumawat (Expert)

30 April 2020 Where you claimed drawback under customes as well gst you won't be granted refund of IGST. HOWEVER if you claim drawback only of customs, refund of IGST will be allowed.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

29 October 2026 The Supreme Court in VKC Footsteps (2021) upheld that inverted-duty refunds under Rule 89(5) exclude input services and capital goods; on exports with IGST, the refund is blocked only if you claim the higher drawback that includes the GST component.

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