gnv satish 22 January 2020
I deal in jewellery,
tax rate on sales is 3%, tax rate on my input goods is 3% too, but I am paying 18% GST on Rent, CA services, billing software and on many services. Because of this ITC is being accumulated in my credit ledger.
How do I claim refund of this ITC?
refund application under inverted rate supply category can be filled only if GST rate on input "goods" is higher than the rate which supposed to be collected on sales.
Where as my accumulation is due to what I am paying on input "services".
CAclubindia Online Learning offers a wide variety of online classes and video lectures for various professional courses such as CA, CS, CMA, CISA as well as various certification courses on GST, Transfer Pricing, International Taxation, Excel, Tally, FM, Ind AS and more. know more
Pankaj Rawat (GST Practitioner) 22 January 2020
No.... you cannot .
On conjoint reading Section 54 of CGST Act & Circular 79/53/2018 , Refund of Unutilised ITC may claimed, where the credit accumulated on account rate of tax on INPUTS being higher than rate of tax on output . And we read the definition of INPUT u/s 2(59) Input means Goods other then capital goods , hence it does not include Services or capital goods.
So in short , you cannot claim Refund for the same