07 January 2022
Some confusion in refund of GST INVERTED DUTY STRUCTURE. Input (purchase) is 5%, 12%, 18% & 28%. Output is 5% & 18%. Now my question is as under for which value mention if RFD-01. 1 which value consider in Turnover of inverted rated supply of goods and services ? 2 which value in adjustment total turnover ? 3. Can I count 5% in net input tax credit ? Please help me.
10 July 2024
Refund under the inverted duty structure in GST involves calculating the excess input tax credit (ITC) accumulated due to higher tax rates on inputs compared to the output supplies. Here’s how you should approach each of your queries for filing Form RFD-01:
1. **Turnover of Inverted Rated Supply of Goods and Services:** - This refers to the aggregate value of inverted rated supplies during the relevant period. In your case, you have two types of output supplies: - Supplies taxed at 5% - Supplies taxed at 18% - For the purpose of calculating the turnover of inverted rated supplies, you should consider the total value of these supplies made during the period for which you are claiming the refund (usually a financial year or a quarter).
2. **Adjustment Total Turnover:** - Adjustment total turnover includes the turnover of all taxable supplies, including zero-rated supplies, exempt supplies, and non-GST supplies. This figure is used to compute the ratio for calculating the refund amount. - It's important to note that for adjustment total turnover, you should exclude the value of inward supplies on which tax is payable under reverse charge mechanism (RCM).
3. **Net Input Tax Credit:** - Yes, you can count the ITC availed on inputs taxed at 5% (as per your example) in the calculation of net ITC. - To calculate the net ITC, add up all the ITC availed during the relevant period on inputs used in making the inverted rated supplies.
### Example Calculation:
Let's assume hypothetical figures for clarity:
- **Inward Supplies (Inputs):** - Taxed at 5%: Total ITC availed = Rs. 10,000 - Taxed at 12%, 18%, and 28%: Total ITC availed = Rs. 30,000
- **Outward Supplies (Output):** - Taxed at 5%: Total turnover = Rs. 50,000 - Taxed at 18%: Total turnover = Rs. 80,000
- **Calculations:** - **Turnover of Inverted Rated Supply:** - Total turnover of 5% supplies + Total turnover of 18% supplies = Rs. 50,000 + Rs. 80,000 = Rs. 1,30,000
- **Adjustment Total Turnover:** - Total turnover of all taxable supplies (including 5%, 18%, and others) excluding RCM supplies.
- **Net ITC:** - Total ITC availed on inputs taxed at 5% = Rs. 10,000
### Steps to File RFD-01:
- Fill in the relevant figures for turnover of inverted rated supplies, adjustment total turnover, and net ITC in Form RFD-01. - Provide supporting documentation and declarations as required by the GST authorities. - Submit the form online through the GST portal.
Ensure all calculations are accurate and supported by proper documentation to avoid delays or rejections in processing your refund claim. If you have complex transactions or require precise guidance, consulting with a GST expert or tax advisor would be advisable.
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