Excess Gst input credit
Anil Lahoti (88 Points)
20 February 2018
In Textile’s excess balance in electronic credit ledger is non refundable. It is accumulated due to 12 gst on raw materials
6 Replies
sujith kumar dasa
(banglore)
(1496 Points)
Replied 20 February 2018
If tax on raw materials is higher than tax rate on output sales, it is called inverted tax scruture. In such cases the company will always have excess input credit, hence the government has included in law that in such cases the companies can claim refund of excess input by failing refund claim
Dhananjay saraf
(Chartered Accountant)
(254 Points)
Replied 21 February 2018
Sl. No. Process Refund Allowed or not Remarks
1. Textile Fabrics No Refund Notification no 05/2017 (Central Tax)
2. Textile Processing Refund allowed
3. Apparels Refund allowed
Refer attached article for better understanding
Attached File : 994273 20180221111655 availability refund to textile sector.pdf downloaded: 122 times
Anil Lahoti
(88 Points)
Replied 21 February 2018
So textiles fabrics no refunds... so what to do with this excess unitised gst, which on the other hand increasing net profit.
Dhananjay saraf
(Chartered Accountant)
(254 Points)
Replied 21 February 2018
No treatment under GST.
Sunk cost which you can write off in P&L at end of every financial year
Anil Lahoti
(88 Points)
Replied 21 February 2018
We will write of this gst in our account, but what about gst at portal, it will mismatch with our account
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