REFUND OF ACCUMULATED GST-ITC
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 25-1-2018 Last Reply Date:- 25-1-2018 Goods and Services Tax – GST
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GST
Dear Experts,
My query is on Refund application RFD-01 A
We are a pharma manufacturer and our outward supply final product is of 12 % GST. We buy about 200 raw materials, packing materials, consumables and availing so many services with different (almost all) rates of GST. In the application Statement 1 asks the following.
Refund on account of ITC accumulated due to Inverted Tax Structure
1. Turnover of inverted rated supply of Goods
2. Tax payable on such inverted rated supply of goods
3. Adjusted Total Turnover
4. Net Input Tax Credit
5. Maximum refund
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d is as follows :-
"(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) x 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)."
Now as per sub-rule (4) NET ITC and Adjusted Total turnover means :-
"Net ITC" means input tax credit availed on inputs and input services during the relevant period;"
"Adjusted Total turnover" means the turno
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