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What is inverted duty structure

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Radhakrishnan

Accounts Officer

122 Points Posted on 22 April 2021

what is the concept of refund under inverted duty structure scheme

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Quick Summary

An inverted duty structure occurs in GST when the tax rate on your business's purchases (inward supplies) is higher than the tax rate on your sales (outward supplies). This means you pay more GST on what you buy than what you charge your customers. Consequently, this can lead to an accumulation of Input Tax Credit, potentially making you eligible for refunds.

prasad Nilugal

3924 Points Posted on 22 April 2021

Inverted duty structure means Input Tax Credit is accumulated on account of , higher rate of Tax on Inward supply (purchase) than Outward Supply (Sales ) i,e Purchase of Goods 18% , Sales for 12% .

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 22 April 2021

The GST rate paid on purchases is more than the GST rate payable on sales. Archit Gupta. Under GST, the term 'Inverted Tax Structure' refers to a situation where the rate of tax on inward supplies (purchases) is more than the rate of tax on outward supplies (sales).