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Refund under gst

Others 231 views 1 replies

Hi,

We import hardware products and hence liable to reverse charge liability (IGST). However IGST amount will be huge and output liability will arise as and when we sell the goods. In this case can we claim refund of excess GST paid or the same will have to kept as electronic cash credit only for future set off?

Regards,

Replies (1)
You can claim for refund of unutilized credit only under following circumstances:
1. If you are making a Zero rated supplies i.e exports and supplies to SEZ. or
2. Inputs accumulated because of inverted duty structure i.e eg: your inputs are taxed say at 18% but your outputs are taxable at 12% then you can claim the refund.

if your case fits into any of the above situation then you can claim refund otherwise carry forward the ITC.


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