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Inverted duty structure.

21 July 2020

cememt - 28%
iron- 18%.

if my supplier supplier has sold both cement and iron as a single supply(i.e mixed supply ) then my input rate will be 28%

if i sold iron it would attract 18%. so can i apply refund u/s 54(3).

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4 Replies

chethan data (298 Points)
Replied 21 July 2020

Yes possible on this transaction

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 21 July 2020

No...... you cannot claim refund under IDS

1 Like

chethan data (298 Points)
Replied 22 July 2020

Dhana sai sir are you input service distribution or not

1 Like

Maryam Hasan Meem (Student) (448 Points)
Replied 22 July 2020

A Registered Person may claim a Refund of Unutilized ITC on account of INVERTED DUTY STRUCTURE at the end of any tax period

where the Credit has Accumulated on account of RATE of tax on Inputs being Higher Than the rate of tax on Output Supplies.

EXCEPTIONS where Refund Of Unutilized INPUT TAX CREDIT shall NOT be allowed in these cases

Output supplies are 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.

If the GOODS Exported out of India are subject to export duty.

If supplier claims Refund Of Output Tax paid under IGST Act.

If the supplier avails Duty Drawback or refund of IGST on such supplies.

1 Like