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Refund of input services under an inverted duty structure

Atul M (aaa) (729 Points)

19 July 2022

Dear Experts,

Can we claim a refund of input services under an inverted duty structure?

Thanks in advance.

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4 Replies

CA Nitin K. Varshney (FCA DISA CCA Peer Reviewer (ICAI)) (606 Points)
Replied 19 July 2022

Yes you can by filing online form RFD-01 on GST portal.

Atul M (aaa) (729 Points)
Replied 19 July 2022

Thanks, Sir. But sir refund is allowed only for GST paid on input goods. Notification no. 26/2018 make changes in Rule 89(5) with retrospective effect from 1st July 2017 and allow refund only for the inputs of goods.

CA Nitin K. Varshney (FCA DISA CCA Peer Reviewer (ICAI)) (606 Points)
Replied 19 July 2022

yes. Input on capital goods, services and other non manufacturing expenses will not be eligible for the computation of refund under inverted tax structure. Further ITC on edible oil is also ineligible for refund under inverted tax structure wef 18/07/2022. So you have to keep in mind the eligible ITC while computing refunds.