06 January 2020
To a query "Itc refund for e commerce sellers" posted on 14th Jan 2019, (please click on this link to see the original query and answers provided by experts - "https://www.caclubindia.com/experts/itc-refund-for-e-commerce-sellers-2713454.asp" ), experts mentioned that it is not possible to claim refund.
However, I guess, the intention of person asking this query was, whether seller or actual supplier could use this available credit at the time of discharge of tax liability (his GST liability)?".. that means, though seller is not able to claim refund, can he/she use this credit to set off his tax liability (his GST liability) ? (please be noted that this query is not about utilizing TCS/TDS credits). As per my knowledge, every seller is utilizing this available credit amount to set of their GST tax liability. Kindly clarify. Thanks in advance.
06 January 2020
Seller can avail refund of unutilised input tax credit where the credit has accumulated on account of rate of tax on INPUTS being higher than the rate of tax on output supplies. Tax on commission paid to e commerce operator is not input but INPUT SERVICES . Same point was indicated by the expert ( in second last para) of reply for question raised on 14.01.2019
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