Inverted structure

379 views 16 replies
User Avatar

accountant
111 Points Joined December 2012
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%.
1 Reply Share Follow
On 22 September 2019 at 16:11 Report
Replies (16)
User Avatar

615 Points Joined July 2017
He can file RFD 01 to claim refund of accumulated ITC.
Reply
On 22 September 2019 at 16:57
User Avatar

accountant
111 Points Joined December 2012
But I'm confused how to calculate total adjusted turnover
Reply
On 22 September 2019 at 18:37
User Avatar

615 Points Joined July 2017
"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.
Reply
On 22 September 2019 at 19:33
User Avatar

GST Practitioner
55067 Points Joined June 2017
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 .
Reply
On 22 September 2019 at 19:39
User Avatar

accountant
111 Points Joined December 2012
So how to claim refund
Reply
On 22 September 2019 at 19:42
User Avatar

GST Practitioner
55067 Points Joined June 2017
You cannot .......kindly refer condition mention in section 54 of CGST Act
Reply
On 22 September 2019 at 19:43
User Avatar

accountant
111 Points Joined December 2012
Actually I have already discussed with the officer of gst department
Reply
On 22 September 2019 at 19:48
User Avatar

GST Practitioner
55067 Points Joined June 2017
But there ,is no provision in Act ...
Reply
On 22 September 2019 at 20:17
User Avatar

GST Practitioner
55067 Points Joined June 2017
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
Reply
On 22 September 2019 at 20:20
User Avatar

accountant
111 Points Joined December 2012
Under inverted tax structure
Reply
On 22 September 2019 at 20:28
User Avatar

615 Points Joined July 2017
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.
Reply
On 22 September 2019 at 20:35
User Avatar

GST Practitioner
55067 Points Joined June 2017
You are always welcome dear
Reply
On 22 September 2019 at 21:03
User Avatar

accountant
111 Points Joined December 2012
So why does officer suggest me to claim refund under inverted structure
Reply
On 22 September 2019 at 22:03
User Avatar

pro badge

Bhopal
1741 Points Joined February 2017
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......
1 Reply
On 22 September 2019 at 22:54


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading