Assessee providing supplies both inverted rate (sale of solar renewable energy system @ 5%)and exempted (sale of electricity)
Can he go for refund total balance available in electronic credit ledger on monthly basis?
please advise me?
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
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