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Refund of cost claim

09 June 2020

my query is due to change in tax structure adjustment of input gst there's balance in credit ledger what is the procedure to claim refund

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8 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14238 Points)
Replied 09 June 2020

is it under inverted duty structure ?. ( Input Tax more than Output tax lying in credit ledger )

Padmanabhan (Student) (1321 Points)
Replied 09 June 2020

If the accumulation is due to inverted duty structure YouCan claim refund.

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 10 June 2020

As per Circular 135/05/2020 GST , no you cannot claim Refund of Unutilised ITC on account of IDS where the inversion is due to change in the GST rate on the same goods.

As when the rate changes for any goods at the point of time the Input & output rate of said goods is same.

& in case of IDS in term of sub-section (3) of Section 54 of CGST Act the refund can be claimed where the Credit is accumulated on account of RATE OF TAX ON INPUT BEING HIGHER THAN RATE OF TAX ON OUTPUT SUPPLIES.

so you cannot claim refund .

1 Like

KRISSHNAN KP (4215 Points)
Replied 10 June 2020

Claim is admissible

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 10 June 2020

@ KRISSHNAN KP

CAN REFER ME SECTION OR NOTIFICATION, WHICH ALLOW REFUND FOR THE SAME.

(KINDLY DO REFER THE CIRCULAR 135, WHICH SPECIFICALLY STATING THAT NO REFUND IS ADMISSIBLE IN THIS CASE)

HARI NARAYANA Rao (16 Points)
Replied 10 June 2020

Cost is accumulated due to interstate purchases and made local sales. input igst is adjusted against cgst and sgst if any excess in input igst. there is input of cgst and sgst on local purchases which is accumulated how to claim of refund of cgst and sgst. every month cgst and sgst accumulated please let me know how to claim refund