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Excess of ITC refund

Yasir (article assistant ) (472 Points)

18 June 2025

I have purchased goods @ 12%

But we make sales @ 5%

Can we claim of Excess ITC as refund

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3 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8545 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. -

*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.

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.