Question ID :
44853
082701
While calculating Eligible input GST for GST refund under inverted tax strucure, authorities are not reducing Adjusted turnover after reducing Inverted sale on account of trading activities Can we appeal against it
Posted by
Mahesh Kumar
on
May 15, 2025
Filed Under
GST
Yes, you can appeal against the GST authority’s action if they are not excluding trading turnover from the adjusted total turnover while calculating the refund under the inverted duty structure. As per Rule 89(5) of the CGST Rules, the refund formula is based on the turnover of inverted-rated supplies in proportion to the adjusted total turnover. If trading activities do not involve an inverted duty structure (i.e., input and output tax rates are the same), such turnover should be excluded from both the numerator and denominator of the refund formula. Including it inflates the denominator and unfairly reduces the refund amount. You may file a representation or appeal under Section 54 of the CGST Act, arguing that the calculation method is inconsistent with GST rules and legal interpretation.
Posted by
SACHIN KUMAR RAI on
May 15, 2025