Gst refund(inverted duty structure)

supplier is supplying goods as well as services at 5% but purchase goods for 12%. will service portion be counted for calculation of turnover for inverted duty structure
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Quick Summary
This discussion clarifies GST refunds for inverted duty structures. It addresses whether the service portion of a business's turnover is considered when calculating eligibility for a refund, particularly when inputs are taxed at 12% and outputs at 5%. The advice provided indicates that the supply of services, excluding exempt ones, is indeed included in the turnover calculation for this purpose, as per Notification No. 39/2018-CT.

Refund of accumulated ITC on input services will not be available  under duty inverted structure.

As per Notification No. 39/2018-CT dated 04.09.2018, the supply of services excluding the supply of exempt services shall be included in the turnover.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

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