GST REFUND IN CASE OF INVERTED SUPPLY AND EXEMPT SUPLY

As per subject rule 5 of Rule 89,

Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods

“Net ITC” means input tax credit availed on inputs and input services during the relevant period;

“Adjusted Total turnover” means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period;

So as to above formula ITC attributes to Exempted supply is not eligible for input

Sir, could you please elaborate with example ?

No, proportional refund can be claimed Refund amount=turnover inverted rated supply of goods or services/adjusted turnover *Net ITC -tax payable on inverted rated supply where adjusted turnover is total turnover other than nil rated & exempt supply. Net ITC is ITC availed during method and you cannnot avail input of that inward supply which is used for exempt supply