Inverted Tax Structure rules for Supplies through E-Commerce

The term ‘Inverted Tax Structure‘ refers to a situation where the rate of tax on inputs purchased is more than the rate of tax on outward supplies. That means Inverted Duty Structure arises when tax paid on Inward Supplies is higher than tax payable on outward supplies.

 It may be noted that refund of accumulated ITC in terms clause (ii) of sub-section (3) of section 54 of the CGST Act is available where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. It is noteworthy that, the input and output being the same in such cases, though attracting different tax rates at different points in time, do not get covered under the provisions of clause (ii) of sub-section (3) of section 54 of the CGST Act. It is hereby clarified that refund of accumulated ITC under clause (ii) of sub-section (3) of section 54 of the CGST Act would not be applicable in cases where the input and the output supplies are the same. 

Firstly, you should notice that you pay GST to E-commerce operator when you sell your finished goods through E commerce operator to B2B or B2C. You are obtained a service to sell your finished good. Inverted tax is applicable zero rated supply, concessional rate supplies or any changes in GST rates.

Since the GST paid to E-Commerce operator forms significant part of sale value and is of higher GST Rate (18%), and it being paid after finished good is produced, so it cannot be eligible for Refund under Inverted tax structure? Any alternative solution to such credit accumulated?