Finance/Compliance Consultant
69339 Points
Posted on 01 July 2026
An Inverted Duty Structure exists when your input tax rate is higher than your output tax rate, causing excess, unutilized ITC. To see if it applies to your business, compare your raw material GST rates against your finished product's GST rate. If it applies and is not a restricted category (like certain textiles or coal), you can claim a refund for the accumulated credit via Form GST RFD-01 on the GST portal.