Refund of accumulated ITC due to lower rate of GST on finished goods
Query (Issue) Started By: – MohanLal tiwari Dated:- 27-12-2017 Last Reply Date:- 28-12-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts,
\nOne of supplier is supplying goods of HSN 8607 @5% GST but almost all inputs required are @ 18%. Now, his ITC is getting accumulated. Please advise whether refund of such accumulated ITC amount is available keeping in mind that during Pre-GST, there was clear provision for not claiming any set-off of Cenvat credit arises due to above.
\nReply By KASTURI SETHI:
\nThe Reply:
\nExtract of FAQs issued by the Board
\nQ 10. Can any taxable person claim refund of any unutilized ITC at the end of the tax period?
\nAns. No,<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ure: 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. In such cases also, refund can be applied under Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017. It should be noted that no refund of unutilised input tax credit is allowed in cases where the goods exported out of India are subjected to export duty. Further, no refund of input tax credit is allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Refund of accumulated ITC due to lower rate of GST on finished goods Query (Issue) Started By: – MohanLal tiwari Dated:- 27-12-2017 Last Reply Date:- 28-12-2017 Goods and Services Tax – GSTGot 5 RepliesGSTDear Experts, One of supplier is supplying goods of HSN 8607 @5% GST but almost all inputs required are @ 18%. Now, … Continue reading “Refund of accumulated ITC due to lower rate of GST on finished goods”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9628","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9628"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9628\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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