This discussion explores the possibility of obtaining a refund for Input Tax Credits (ITC) that are deemed ineligible. While some consultants claim to have successfully processed such refunds for clients, the general consensus among experts is that refunds are strictly limited to eligible ITC, particularly in cases of export supplies or under an inverted duty structure. Claiming refunds for ineligible ITC is advised against, as it could lead to penalties.
Could you give me some suggestions on whether it's possible to receive a refund for ineligible tax credits? I recently spoke with a consultant who claimed that it might be possible, but I'm unsure. Any insights would be appreciated.
If Possible, Kindly let me know the Act, Provisions or Rules
01 May 2024
Totally agree with Expert's View, Refund is only available for Eligible ITC and that too only in case of Export Supply or Supply under Inverted Duty Structure. So in no case Ineligible ITC can be availed and if it cannot be availed you can claim refund as well.
Thanks for the Inputs The consultants claimed to have submitted refund applications solely for ineligible Input Tax Credit (ITC) and received refunds for 4 to 5 clients. I'm wondering if this is feasible.