Refund on inverted duty structure

Dear Sir,
A company is getting imported certain goods @ 18% IGST along with custom duty and its customers mainly include research organizations for whom GST payable is @ 5% GST(since research organizations receive exemption). is it eligible to claim refund ITC under RCM?Any circular or notification
plz update sir..
Replies (7)
Quick Summary
This discussion addresses whether a company importing goods at 18% IGST and custom duty, then supplying them to research organisations at a 5% GST rate, can claim a refund of unutilised Input Tax Credit (ITC) under an inverted duty structure. The consensus is yes, as IGST paid on imports is considered ITC. However, a practical challenge arises as import bills may not auto-populate in GSTR-2A, requiring specific procedures to be followed as per Circular 79/53/2018 GST.

Yes as per Notification 45/2017 CT (r) :
Scientific and technical
instruments, apparatus,
equipment (including
computers); supplied to public funded research Institute the GST Rate is 5% .

Now come to your Query , In my view yes you are eligible to claim Refund on IDS.
As per Section 54(3) Refund of Unutilised ITC in case of IDS is available where ITC remains Unutilised even after setting off the output tax liability.

Import of Goods: The IGST is leviable on Import of Goods under the provision of Section 5 of IGST Act read with Section 3(5) of custom tariff Act 1975.

Now whether the IGST paid on Import cover under defination of ITC , the answer is Yes , if read the Definition of ITC under Section 2(62) , it includes the Section 5 of IGST Act .

Hence you are eligible to claim refund .
Thank you very much sir....But the GST officials told that they sanctioned only autopopulated ITC in our GSTN.In this regard there is no IGST paid details in our 2A.

 

apply online 

THERE IS GUIDE LINE IN CIRCULAR  79/53/2018 GST , THE BILLS NOT APPEARING IN 2A NEED TO BE UPLOADED.

BUT PLZ ASK THE OFFICER HOW CAN IMPORT BILL CAN BE REFLECT IN GSTR 2A.

Ok sir tq

AT YOUR SERVICE DEAR

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