Refund of GST Input Credit

This discussion clarifies the eligibility for a GST input credit refund for a private company in Delhi whose input GST exceeds output GST, with a current credit ledger balance of ₹50 lakhs. The key factor for eligibility is an 'inverted duty structure', where the GST rate on inward supplies (purchases) is higher than on outward supplies (sales). If the credit accumulation is solely due to higher purchase volumes rather than a rate disparity, a refund is generally not permissible. The company appears eligible due to an 18% GST on inputs versus 5% on outputs and is advised to consult a professional for the refund application process.