Excess of ITC refund

I have purchased goods @ 12%

But we make sales @ 5%

 

Can we claim of Excess ITC as refund 

Replies (3)
Quick Summary
If you've paid GST at a higher rate (12%) on purchases than you charge on sales (5%), you might be eligible to claim a refund for the excess Input Tax Credit (ITC) accumulated due to this inverted duty structure. To claim this refund, ensure your GST returns (GSTR-1, GSTR-3B, GSTR-9) are filed accurately and then submit your refund claim via the GST portal, providing all necessary supporting documents. Always verify your eligibility based on CGST Act Section 54(3) and Rule 89(5), and consider seeking professional advice.

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. - 

*Supporting Documents*: Maintain supporting documents, including invoices, payment receipts, and records of ITC accumulation.

Conclusion To claim a refund of excess ITC: - 

*Verify Eligibility*: Verify your eligibility for claiming a refund due to inverted duty structure. - 

*File GST Returns*: File your GST returns accurately. - *Claim Refund*: Claim the refund of excess ITC in the GST portal.

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. 

Please correct as "CBIC" above , instead of CBDT . 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details