GST refund of inverted duty structure : Formula Changed : Rule 89(5) CGST

By | April 21, 2018
Print Friendly, PDF & Email
(Last Updated On: April 21, 2018)

GST refund of inverted duty structure

Rule 89 (5) of CGST Rules prescribe formula for refund on account of inverted duty structure,

Old formula of GST refund on account of  inverted duty structure

Application for refund of tax, interest, penalty, fees or any other amount

Rule 89 (5) of CGST Rules :

In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula –

Maximum Refund Amount = {(Turnover of inverted rated supply of goods) × Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods

Explanation.—For the purposes of this sub-rule, the expressions “Net ITC” and “Adjusted Total turnover” shall have the same meanings as assigned to them in sub-rule (4).

New formula of GST refund on account of  inverted duty structure

However as per  Notification No 21/2018  Central Tax Dated 18th April  2018  

Rule 89 (5) substituted  :-

“(5). In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services)
x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of
goods and services.

Explanation:- For the purposes of this sub-rule, the expressions –
(a) “Net ITC” shall mean input tax credit availed on inputs during the relevant period
other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and

(b) “Adjusted Total turnover” shall have the same meaning as assigned to it in sub-rule
(4).”;

Related Post

Video ; GST Refund for Export of Services : GST News [Part 191] TaxHeal.com

Video -GST Refund to UIN Agencies : CBIC Circular : GST News Part 216

Video -GST Refund of UIN Entities : GST News [ Part 193 ] : TaxHeal.com

Video GST Refund issues clarified by CBEC in Circular 15.03.2018 : GST News [Part 194] TaxHeal.com

Video ; GST Refund for Export not received ? correct EGM Errors : GST News [Part 195 ] TaxHeal.com

Video -How to Track GST Refund Status : GST News [Part 190] : TaxHeal.com

GST Refund for Recipient of Deemed Export : FAQs and Process

GST Refund on Export of Goods (With Payment of Tax) : FAQ

 

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

Leave a Reply

Your email address will not be published. Required fields are marked *