Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

NET ITC clarify

Sakthivel K (GST / Accountant) (143 Points)

24 July 2019

in the refund formula of inverted GST structure....

NET ITC is confusing...
is it the sum of all ITC of the period irrespective of their rates of all raw materials/spares..

Reply
Follow
Share

6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 July 2019

Yes you are correct , kindly Refer circular 79/53/2018 GST ,date 31/12/2018

Upgrade to CAclubindia Pro. Subscribe Now!

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 25 July 2019

Originally posted by : Sakthivel K
	in the refund formula of inverted GST structure....NET ITC is confusing...is it the sum of all ITC of the period irrespective of their rates of all raw materials/spares..

Yes it is total ITC excluding input service and capital goods.

1 Like

Sakthivel K (GST / Accountant) (143 Points)
Replied 25 July 2019

Hi Saloni Thank you so much...but can you confirm is it excluding/including ITC from the input services... Attached a GST file from www.cbic.in

Attached File : 1355812 20190725115045 1564035624499414238207932571468.jpg downloaded: 101 times

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 25 July 2019

Yes you are right, but it is an old flyer. Earlier there was no restriction on it but if you refer to Circular no-79/53/2018-GST, it is clearly mention in the point no-14 Inputs do not include services and capital goods.

We are also into claiming the refund on account of Inverted duty structure, input service and capital goods are not allowed.

1 Like