Question

The query is related to the TEXTILE MANUFACTURER, who manufacture (AGRO NET). Is it eligible for ITC Credit and Liable for Refund in GST

Answer

The product (Agro net) is classified under Chapter heading 5608 or 60 as the case may be. It is subjected to GST @ 5%.

Since product is subjected to GST therefore ITC is available as per Section 16 of CGST.

Till 31st July 2018 as per Notification No. 5/2017 Central Tax (Rate) refund of ITC is not available. Although the same could be used for any taxable supply. But w.e.f. 1st August 2018 Notification No. 20/2018 Central Tax (Rate) is applicable and refund of ITC remaining in balance because of inverted rate is available.

Notification No. 20/2018 and Circular No. 56/30/2018 is enclosed. (Reply dt.24/09/2018)