Refund under inverted structure
Query (Issue) Started By: – natarajan ramakrishnan Dated:- 14-2-2019 Last Reply Date:- 18-2-2019 Goods and Services Tax – GST
Got 4 Replies
GST
Dear sir,
Understand that, There is time limitation for claiming refund under inverted structure refund as 2 years from from the end of tax period for which the refund is sought.
Our case, falling under inverted duty structure. Whereby for refund eligibility, the input services and capital goods will not considered.
Considering the formula under rule 89(5), our ITC on inputs is very less considering the inverted duty liability. Resulting, the refund eligibility is arrived to nil..
Though we have excess ITC on services, the textile industry not in a po
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e 89(5) of GST Rules, 2017 challenged – Gujarat High Court issues notice
The Gujarat High Court Bench comprising Hon'ble Mr. Justice Akil Kureshi and Hon'ble Mr. Justice B.N. Karia on 27-9-2018 issued notice in the R/Special Civil Application No. 14980 of 2018 filed by Scorpio Enterprise (Scorpio Enterprise v. Union of India). = 2018 (9) TMI 1766 – GUJARAT HIGH COURT The petitioner has challenged the vires of amended Rule 89(5) of the Central Goods and Services Rules, 2017 which has been given retrospective effect. Essentially, by virtue of impugned rule, in case of inverted tax structure of Service Tax, the assessee; such as the petitioner, are not be able to claim refund of the differential Service Tax. One of the main arguments of the p
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it is right time to opt for writ petition.
With regards
Natarajan
Reply By KASTURI SETHI:
The Reply:
As per Section 54(3) of CGST Act, 2017, you may claim refund of unutilised input tax credit at the end of any tax period and as per Explanation (2)(e) to Section 54(14) relevant date is the end of financial year. In other words you cannot accumulate for more than two years. You can claim at the end of every financial year. So restriction is here for accumulation also. So it cannot be carried forwarded.
Regarding filing writ petition, you can challenge the formula under Rule 89(5) in order to get refund of unutilized input service credit and capital goods credit.
Reply By natarajan ramakrishnan:
The Reply:
Dear sir,
Like to bring to
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