07 July 2017
If faced with a situation of excess reverse charge paid month after month at 18%, and output tax liability much lesser at 5% month after month, what happens to the RC paid to the registered dealer's credit that is unutilised? RC can be used for ITC...that us known. BUT IS RC EQUAL TO AND SAME AS ITC? In other words, will a registered dealer get refund of excess RC paid under duty inversion? If YES, then why should a registered dealer be made to pay reverse charge month after month on cash basis? Why not adjust it against RC generated the next month...
07 July 2017
Under service tax regime refund is given under similar circumstances(tax paid under RCM is refunded if not able to claim tax credit) the same will be continued under GST.
07 July 2017
Refund of unutilized input tax credit can be claimed in the following two cases under GST:
Unutilized input tax credit on zero-rated goods/services on which no payment of tax was made can be claimed as refund. Accumulation of unutilized ITC due to higher tax rate on inputs than the output supplies (other than zero-rated/exempted goods)
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