Refund under Inverted Duty Structure where Supplier is supplying Goods under Concessional Notification: CBIC clarifies

Refund - Supplier - supplying Goods - Concessional Notification - CBIC - taxscan

Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification.

The CBIC has clarified that in cases where the supplier is making supply of goods under a concessional notification and the rate of tax of output supply is less than the rate of taxon input supply (of the same goods) at the same point of time due to supply of goods by the supplier under the specified concessional notification, refund of accumulated input tax credit on account of inverted structure as per clause (ii) of sub-section (3) of section 54 of the CGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax on inputs (same goods) at the same point of time, as per some concessional notification issued by the Government providing for lower rate of tax for some specified supplies subject to fulfilment of other conditions.

It further substituted para 3.2 of the Circular No. 135/05/2020-GST dated 31.03.2020.

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