Are domentic sale eligible for refunds under input accumulation due to inverted duty?

Hello,

I am a manufacturer of hosiery goods. Most of my inputs are taxed under 12% bracket(HSN-5509) while the finished products are taxed @ 5% (HSN-6117) due to which a lot of credit has accumulated. I would like to ask if I am eligible for refund of excess tax paid if the sale is done for domestic purpose only? If yes, what is the process for it?

Regards

Manik

Replies (7)
Following above question, Interested to know the answer.
Yes offcourse you can get refund. But
As per notification 20/2018 CT (R) , you can avail Refund on untilised credit from 1/8/2018 onward
Originally posted by : Pankaj Rawat
Yes offcourse you can get refund. ButAs per notification 20/2018 CT (R) , you can avail Refund on untilised credit from 1/8/2018 onward

Isn't that for fabrics only? (HSN:6000)

Actually.. it was restricted in woven fabric & railway locomotive for which notification 5/2017 CT (r), 29/2017 CT (r) , 44/2017 CT rate were issued but as per Latest notification 20/2018 CT (r) revoke the restriction on same except for Railway Locomotive (HSN 8601 to 8605)
Originally posted by : Pankaj Rawat
Actually.. it was restricted in woven fabric & railway locomotive for which notification 5/2017 CT (r), 29/2017 CT (r) , 44/2017 CT rate were issued but as per Latest notification 20/2018 CT (r) revoke the restriction on same except for Railway Locomotive (HSN 8601 to 8605)

I guess I wans't clear in my last post.

As per the notification 20/2018 CT (r) the input credit restriction was revoced on hsn code 60 (fabrics) which would be availiable from 1/8/2018 ownwards. However both my inputs and outputs wrnt on that list from the very beginning. Hence, from my understanding, I shall be eligible for refund from 1/7/2017 only. Am I correct?

 

Regards

 

Manik

YES THE RESTRICTION  OF REFUND ITC  UNDER INVERTED TAX STRUCTURE ON THIS ITEMS REVOKE  YOU ARE ELIGIBLE TO TAKE REFUND ONLY AFTER 1.8.2018  (THE SALE PURCHASE DONE AFTER 1.8.2018)

sir our product code hsn code is 5211 cotton and polyester mix fabrics and 5407 polyester fabrics
sir what we can also claim excess electronic credit ledger

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