25 August 2018
Good evening to all expert, Please reply urgent Our CGST/SGST output tax rate is 12% & 18% and Input at various rate i.e. 5% ,12%,18%,28% CGST/SGST/IGST & Import also.then how will calculate inverted duty structure..Pls guide.
26 August 2018
As per Section 54(3) of the CGST Act, 2017, a registered person may claim a refund of unutilized input tax credit on account of Inverted Duty Structure Inverted Duty Structure means where Rate of tax on Inputs is more than Rate of tax on Outputs & Output services. Refund of input tax credit shall be granted as per the following formula:— Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) × Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services. • “Refund amount” means the maximum refund that is admissible;
• “Net ITC” shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both;
• “Turnover of inverted rated supply of goods” means the value of inverted supply of goods made during the relevant period; • • “Tax payable on such inverted rated supply of goods” means tax payable on such inverted rated supply of goods under the same head i.e. IGST, CGST, SGST; • • “Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2 of CGST Act, excluding the value of exempt supplies other than inverted-rated supplies, during the relevant period; • • “Relevant period” means the period for which the claim has been filed.
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