Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Purchase GST tax more than sales GST tax

581 views

Save Share

Hitesh rawal

402 Points Posted on 28 January 2020

What in case if purchase is of 18% and later by some packaging changes its been sold with 5% in this case what to do as GST credit goes on increasing can we claim refund or whats the thing we can do to utilise the unused ITC credit.

Replies (4)

Quick Summary

If your business encounters a situation where the GST paid on purchases (e.g., 18%) is higher than the GST charged on sales (e.g., 5%) due to factors like packaging changes, this creates an inverted duty structure. In such cases, you can claim a refund for the accumulated, unused Input Tax Credit (ITC). This is a common scenario, particularly with products like oils where loose sales might attract a lower GST rate than packaged goods.