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Regarding refund in case of service provider

This query is : Resolved 

EXPERT I AM MUCH CONFUSE REGARDING REFUND IN CASE OF INVERTED DUTY STRUCTURE . AS PER SECTION 54(3) IN CASE OF SERVICE PROVIDER OF RENTING A MOTOR VEHICLE.
SIR MY FRIEND PURCHASE A BUS AND PROVIDE FACILITIES TO A COMPANY FOR HIS EMPLOYEES.SIR HE PURCHASED BUS IN AUGUST 2017 WITH CHARGE GST @ 28% SIR HE IS PROVIDING SERVICE WITH CHARGE GST @ 5% (RENTING OF MOTOR VEHICLE) SIR HE HAVE ITC IN CREDIT LEDGER IN GST PORTAL AMOUNT IS APPROX 7 LAKH. SIR HE WANTS TO FILL GST RFD01 FOR CLAMING REFUND OF INVERTED DUTY STRUCTURE . BECAUSE HE PURCHASED BUS WITH GST CHARGE 28% AND PROVIDING SERVICE @ 5%. SO PLEASE TELL ME CAN HE APPLY FOR REFUND UNDER INVERTED DUTY STRUCTURE PLEASE REPLY????



As per Section 54(3)(ii) of the CGST ACT, 2017- A person can claim refund where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies
As per Section 2(59), the term “input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.
On Capital Good ( Purchase of Bus ) Refund due to inverted duty not eligible .


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