Section 42 of cgst act

CGST 522 views 3 replies

Can anyone help me with the section 42 of cgst act calculation mentioned here https://www.indiafilings.com/learn/rules-42-43-cgst-rules/

We buy raw seed cotton from farmers and pay RCM of 5 % 

We extract cotton lint(fibre) and sell to spinning mills at 5%

We also extract oil from seed and sllsto refinery at 5%

The remaining from oilseed is cottonseed oil cake which is exempted.

In this process, our ITC gets accumulated and much amount is accumulated in credit ledger.

 

Is this section useful for us to claim refund of tax

Replies (3)
If Ur product falls under chapter 50 to 55 No refund can be claim for unutilised input

the rule u have mention 42 & 43 is for reversal of montly itc on capital goods attributes to exempted outward supplies
No refund can be granted in this case
prima facie your case does not fall under invert duty structure . so it is not a case of refund


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