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Regarding inverted duty outward supplies

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Rajiv

Senior Accounts Officer

1548 Points Posted on 27 August 2018

Good Morning to All Expert,

Again i came to knew about Inverted Duty Supplies for apply for refund under GST.

Sir Suppose I have following input in the month of July 2018 Gst Rate Amount

1 IGST 18% 150000

2 IGST 12% 125000

3 IGST 28 % 140000

4 CGST & SGST 12% = 145000 T

otal INPUT = 560000

And Sir GST on Sale Output detail Following

1 IGST 18% = 75000

2 IGST 12% = 25000

3 IGSt 28% = 30000

4 CGST & SGST12 %= 55000 Total Amount = 185000

So Expert in that Case I Have Refund ( credit ledger) = 560000-185000 = 375000

Expert please tell me only that how will i make Inverted outward supply for getting refund. because different type tax rate are hare . please suggest please. ???????

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Posted on 27 August 2018

Inputs subject to tax at a higher rate than the rate applicable on outward supplies of goods or services known as ‘inverted duty structure’

So if suppose your purchase A Raw material which has GST rate 5℅ & the finished product for the same when sold is at the rate of 12% , then only you are liable claim refund under "Inverted Tax Structure"

In this case you have to bifurate your sales in correspondence to its purchases.