GST Refund Calculation for Inverted Duty Structure | Rule 89(5)

Описание: GST Refund Calculation for Inverted Duty Structure | Rule 89(5) ‪@TECHGROWHUB‬
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Refund Calculation for Inverted Duty Structure
Methodology for calculating refunds under the inverted duty structure

Inverted Duty Structure (Rule 89(5) of CGST Rules)

In the case of Inverted Duty Structure of Goods or Services or both Only Proportionate Refund of Inputs (ITC on Input Service and Capital Goods is not eligible to Refund in case of Inverted Duty Structure) shall be granted as per the following formula

In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC /Adjusted Total Turnover} – 12[{tax payable on such inverted rated supply of goods and services x (Net ITC ÷ ITC availed on inputs and input services)}].

Explanation: – For the purposes of this sub-rule, the expressions –

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

Adjusted Total Turnover means the sum total of the value of-

The turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and

The turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services,

excluding-

(i) the value of exempt supplies other than zero-rated supplies; and

(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.]

Relevant period means the period for which the claim has been filed.
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