one of my client has accumulated itc
due to reduce in gst return.
he wants to claim itc under inverted structure scheme.
he has stock of goods purchased at 28% and subsequently due to reduce in gst rate he has sale the same @ 18%. in this case what will be the adjusted total turnover. does it includes the goods Sale 28% or only the Sale @ 18%.
and what will be the net ITC. do I need to take the purchased at 18% or just purchased at 28%.
16 Replies
Jamil Ahmed
(615 Points)
Replied 22 September 2019
He can file RFD 01 to claim refund of accumulated ITC.
samira khan
(accountant)
(111 Points)
Replied 22 September 2019
But I'm confused how to calculate total adjusted turnover
Jamil Ahmed
(615 Points)
Replied 22 September 2019
"Aggregate turnover" means the aggregate value of all taxable supplies [excluding the value of inward supplies on which tax is payable by a person on reverse charge basis], exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
So, there should not be any confusion.
So, there should not be any confusion.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 September 2019
No....... it's not the case of Inverted duty Structure & you cannot claim refund for the same .
As per sub Section (3)( ii) of Section 54 of CGST Act , .credit accumulation where rate of Input is being Higher then the rate of Output Tax .
Hence ie person dealing in Fabric woven , where raw material is being purchase rate tax is higher then the sale rate tax.
But in your case it's change of Tax Rate by Govt by power vested in section 164 of CGST Act .
As per sub Section (3)( ii) of Section 54 of CGST Act , .credit accumulation where rate of Input is being Higher then the rate of Output Tax .
Hence ie person dealing in Fabric woven , where raw material is being purchase rate tax is higher then the sale rate tax.
But in your case it's change of Tax Rate by Govt by power vested in section 164 of CGST Act .
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 September 2019
You cannot .......kindly refer condition mention in section 54 of CGST Act
samira khan
(accountant)
(111 Points)
Replied 22 September 2019
Actually I have already discussed with the officer of gst department
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 September 2019
But there ,is no provision in Act ...
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 September 2019
Yes the person whose goods & services were Exempted & become taxable can claim refund (As per Section 18)
Kindly let me know under which Section the GST official is ready give you a refund
Jamil Ahmed
(615 Points)
Replied 22 September 2019
After going through the query once again thoroughly, I find that it's not a case of inverted tax structure. So, refund cannot be claimed under Section 54. Thanks, Mr. Pankaj Rawat for correction.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 September 2019
You are always welcome dear
samira khan
(accountant)
(111 Points)
Replied 22 September 2019
So why does officer suggest me to claim refund under inverted structure
shailendra shukla
(Bhopal)
(1741 Points)
Replied 22 September 2019
Well officers under gst regime use to suggest a lott of things............ some of them are still suggesting to take missing invoices, invoice wise in GSTR 9......
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