HOW MUCH REFUND WE CAN CLAIM IF THE CREDIT LEDGER IS LESS THAN THE MAXIMUM REFUND AS PER Rule 89(5)

This query is : Resolved

Karthik (Querist)
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04 June 2022 How much refund we can claim in the below scenario ?
Outward Supplies:
a) Sales @ 5% 9,00,000/- output tax 45,000/-
b) sales @18% 1,00,000//- output tax 18,000/-
Total output tax 63,000/-
Inward Supplies:
Purchases @18% 7,00,000/- ITC 1,26,000/-
ITC available after 3B return is 63,000/- (i.e 126000-63000)
Maximum refund= 9L/10L*1,26,000-45,000
=68,400

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 The maximum refund can be calculated by dividing the total output tax by the input tax credit available after adjustments. If the total output tax matches the eligible ITC, the maximum refund is ₹63,000. However, the calculation method should be verified and consultation with a GST practitioner or tax advisor is recommended.