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Input gst 18% & output gst 5%

S.S Bisht (Accounts Manager) (43 Points)

09 June 2017

Sir, In our Firm, After Gst We will Purchase the input @ 18% Gst & sell the Product @ 5%Gst so we will get the Credit of the 5% out off 18% but What about Remaining 13% input which we will paid excess. it will refund to us or c/f.

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10 Replies

sumit gupta (taxation ) (26 Points)
Replied 09 June 2017

refund is not allowed

S.S Bisht (Accounts Manager) (43 Points)
Replied 09 June 2017

So we have to pay extra 13% in input withot getting credit.

sumit gupta (taxation ) (26 Points)
Replied 09 June 2017

however you can adjust in other supply

ANISHA RAY (67 Points)
Replied 09 June 2017

Refund will be allowed in case of inverted duty structure as in your case.

S.S Bisht (Accounts Manager) (43 Points)
Replied 13 June 2017

What do you mean other supply?

Amit Mishra (assistant accountant) (47 Points)
Replied 13 June 2017

Sir Glass Product Gst rate and how to Performa Invoice

Amit Mishra (assistant accountant) (47 Points)
Replied 13 June 2017

How To return Format??

shabab (Internal auditor) (47 Points)
Replied 05 July 2017

in the case of footwear manufacturing companies, most of purchases are under 18% and the finished footwear is under 5%. There is also existing the issue of more input (18%) than output (5%). What will do in that case.Is refund possible. Please give clarification.

Lalit Nagpal (Assistant Manager) (541 Points)
Replied 05 July 2017

you will get refund for more details Refer Section 54(3)

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shabab (Internal auditor) (47 Points)
Replied 05 July 2017

Section 54(3) of GST ABOUT HIGHER INPUT RATE THAN OUTPUT RATE

Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period:

Provided that no refund of unutilised input tax credit shall be allowed in cases other than–

(i) zero rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council:

Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty:

Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies.