TARUN DAS (170 Points)
04 April 2019If a supplier purchases goods with GST paid at the rate of 5 % and 18%, and he sells goods at the rate of 5%, can he claim the 18% GST refund?
For example, a red chilli manufacturer purchases plastic material @ 18% and red chili @ 5% and then sells his red chilli @ 5% then input tax @ 18% not used, what is procedure of this ITC claim?
CA Abhilash N
(Chartered Accountant)
(265 Points)
Replied 04 April 2019
Dear Tarun,
In terms of section 54 of CGST Act, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council, the registered person could apply for refund.
CA Ankit Garg
(MD | Genuine Filings)
(781 Points)
Replied 04 April 2019
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