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Refund of ITC claimed on capital good

Rules 212 views 4 replies

Karan

Proprietor

25 Points Joined February 2018

Hi,

A client of mine bought a machinery for the business and claimed Rs 190000 as ITC.

Now the client wants to claim this ITC as a refund to the bank account.

Is refund of ITC claimed on machinery or capital goods allowed? as per my understanding it is not but I just wanted any experts opinion.

Thanks,

Neha

Replies (4)

Ranjit Kumar Mishra

Student

37 Points Joined January 2018

Dear Ma'am,

refund of ITC only in case of Inverted Rate of tax and export of Goods and services by paying IGST.

avove ITC only can be utilised for outward liabilities of GST.

CA RKM
9038835683

J. K. Ratan

Compliance Advisor

794 Points Joined August 2013

Agreed with Mr. Mishra

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

No as per Section 54 you cannot claim refund on same.

Shivam RC

Student

23688 Points Joined November 2017

As per First Proviso to Sub-Section (3) of Section 54 of the CGST Act 2017, " There will be No REFUND of UNUTILISED INPUT TAX CREDIT, " except in the following cases :

(i). Zero Rated Supplies made without payment of Tax.

(ii). Incase of 'INVERTED DUTY STRUCTURE'.

Hence, you are not eligible for REFUND OF ITC as per Section 54 of the CGST Act 2017.

Regards,
Shivam RC.