GST System Implements Council Approved New Formula for Calculation of Refund of Unutilized ITC on account of Inverted Rated Structure
The Goods and Services Tax Network (GSTN) has implemented the GST Council’s recommendation for the calculation of refund of unutilized Input Tax Credit (ITC) on account of inverted rated structure. The formula for calculation of refund under Rule 89(5) of CGST Rules has been amended so as to take into account utilization of ITC on account of inputs and input services for payment of...
The Goods and Services Tax Network (GSTN) has implemented the GST Council’s recommendation for the calculation of refund of unutilized Input Tax Credit (ITC) on account of inverted rated structure.
The formula for calculation of refund under Rule 89(5) of CGST Rules has been amended so as to take into account utilization of ITC on account of inputs and input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the tax period for which refund is being claimed.
The official twitter handle of the GSTN has tweeted that “Implementation of Recommendation of 47thGST Council Meeting Formula for calculation of refund of unutilized ITC on 1 account of Inverted Rated Structure under Rule 89(5) of CGST Rules, 2017 amended.”
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