I have purchased goods @ 12%
But we make sales @ 5%
Can we claim of Excess ITC as refund
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8521 Points)
Replied 19 June 2025
Claiming Refund of Excess ITC Under the Goods and Services Tax (GST) regime, you can claim a refund of excess Input Tax Credit (ITC) accumulated due to inverted You might be eligible to claim a refund of excess ITC accumulated due to the inverted duty structure. Procedure for Claiming Refund To claim a refund: -
*File GST Returns*: File your GST returns (GSTR-1, GSTR-3B, and GSTR-9) accurately. -
*Claim Refund*: Claim the refund of excess ITC in the GST portal. -
prasad Nilugal
( GST Practitioner & Accounts )
(14916 Points)
Replied 20 June 2025
You Can Claim refund of in case Inverted Duty Structure with certain conditions and restrictions , as per section 54(3) of the CGST Act , and rule 89(5) of the CGST rules , ( please refer) , you also refer Circular issued by CBDT , time to time in this regards , along with Case laws . If you are eligible then you Can apply for refund.
Take more Opinion as well.
prasad Nilugal
( GST Practitioner & Accounts )
(14916 Points)
Replied 21 June 2025
Please correct as "CBIC" above , instead of CBDT .
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