Scraps purchased from Govt. auction, contents are Iron, Copper, Alluminium, Silver , cables etc, GST @ 18% is charged. We shortout materials and sale charging applicable GST Rate. In case of Silver GST is @ 3%. On Sale of Silver we Charge GST @ 3%. Now GST authorities are asking that you have taken ITC @ 18% and on sale charging @ 3% So pay us Balance @ 15%. IS it as per any Rule ? Which Rule empowers them to ask for this refund ? Please Guide us ? Why should we pay back this 15% amount ?
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Difference between purchase GST and sale GST
Replies (5)
Quick Summary
I think you are doing correctly. It is a case of inverted duty structure. The detailed written submission should help you.
Dear Doshi Sir,
Thanks for reply.
My querry is about the demand of GST authorities. Are they Right ? If NO , Then what we should reply them ?
Please Guide.
Demand of GST is not correct. Your purchase is inverted duty structure purchase, so you can claim refund for balance .
Thanks Madam. Please clearify this Inverted duty structure is applicable only in case of a manufacturing units Or also applicable in our case of Trading ? We do not requre Refund because overaall our output GST is more than ITC.
Same is applicable for trading also, I have claimed refund in case of inverted duty structure for trading already. So you can also claim
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