Question ID : 35860

Reclaim of Refund amount debyed to credit ledger

We had applied for refund under Inverted Duty Structure which arose because of High GST @18% paid on Input Services GST officials have informed as per Law We are not eligible for refund However they have not given any written response to Refund application even after Two months. How can We reclaim amount debted to GST Ledger

Answer ID : 74994

You should follow up through written letter to the department official for either acceptance or rejection of the application. It will automatically get appear in your ledger if get rejected. They are oblige to reject it in the written order.

Answer ID : 74999

The goverment has come with a notification and the same shall be credited to your account on simultaneous basis. You must contact Supritendent for the same

Answer ID : 75003

Before writing letter to Department, It is advisable to go through CGST Tax (Rate) notification number 5/2017, 29/2017, 44/2017, 20/2018. There are some goods on which refund on account of inverted duty structure is not allowed.

Answer ID : 76008

Refund of GST on account of Inverted Duty Structure is only allowed for Inputs and not in case of input services. Section 54(3)(ii) of the CGST Act 2017 reads as "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. Hence you cannot Reclaim Refund, however you can reclaim the Input credit by contacting the Jurisdiction Officer as no online facility for the same is available till date.

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