IGST

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mahesh sanghani (Querist)
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26 October 2017 I am importing components for lighting and paying 28% IGST. The end product is under 12% IGST. Suppose my cost is 100.00 I add 10% profit so sale price is 110.00 I collect 12% on 110.00 is 13.20 Every month my 28-13.20=14..80 will be with government in from of excess IGST. My question is, will government give me refund or can I use this amount to pay IGST for payment against IGST to be paid for coming imports? Will government give interest on it as it is my money?

B Vinay Reddy

B Vinay Reddy (Expert)
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26 October 2017 Hi Mahesh, Govt will not give any Refund for IMPORTS for exports govt is giving Refund And even it will not pay any interest. Only thing you can do is set-off &carry forward for future months. IGST input can be used for payment of First IGST output & if there is any balance you can use it for payment of CGST then SGST. so IGST input can be used for payment of output IGST,CGST,SGST

mahesh sanghani

mahesh sanghani (Querist)
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26 October 2017 I am selling withing India only. This will happened every month and in 12 months I will lock my 168.00 with government.

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CA Rohit Sinha

CA Rohit Sinha (Expert)
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26 October 2017 Your product fall under inverted rate of duty. Refund claim can be made unutilized input tax credit. Interest will be payable if not refunded within 60 days from the date of receipt of application.
You can refer Section 54 of CGST act.