• Registered Users :
  • 163964
  • Current Active Users :
  • 104041

Your Answer

Question ID : 44606

082701

A cloth manufacturing firm does trading also of certain goods having different HSN. GST on cloth is 5% and on yarn is 12% How to calculate Inverted Turnover for the purpose of refund Whether it should be calculated from turnover only or input value of different HSN's will also be considered assuming input comprising of different HSN is sold

Posted by Mahesh Kumar on Feb 10, 2024

Filed Under GST

Answer ID : 85320

The refund on account of Inverted Duty Structure shall be calculated in accordance with Rule 89(5) of the CGST Rules 2017, Maximum Refund Amount = (Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} - {tax payable on such inverted rated supply of goods and services x (Net ITC÷ ITC availed on inputs and input services) For the above formula, meanings of different terminologies are as follows; a) Net ITC shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and b) "Adjusted Total turnover” and “relevant period" shall have the same meaning as assigned to them in sub-rule (4)]

Posted by SREENIVASULU THULASIRAM on Feb 11, 2024