I retail garments through consignees who get a commission on the monthly sale they do which is done in my company name and my gst reg.
Till June, they were not liable for service tax as they were within exemption limit of 10.00 lakhs.
July onwards, I have to pay reverse charge on their commission at 18% which I can claim as ITC.
However, in my case I will be left with substantial unutilised input credit each month because of duty inversion ( output liability mostly at 5% and partly at 12% on garments, and ITC from reverse charge at 18% amounting to more than output tax).
Question: Will this unutilised reverse charge which will keep piling up be refunded to me on grounds of duty inversion or will I lose it permanently?
CAclubindia
