QUESTION

01/04/2019 to 31/03/2020 how to calculate inverted tax structure refund amount basic sales 5% - 175448039 cgst tax 2.5% - 4386201 sgst tax 2.5% - 4386201 basic sales 12% -9045624 cgst tax 6% - 542737 sgst tax 6% - 542737 basic sales 18% -729361 cgst tax 9% - 65642 sgst tax 9% - 65642 our above total sales and pls calclulate me how many claim maximum refund against inverted tax structure . purchase itc detailed are as under particular igst cgst sgst as per annexure b 8810023 8922275 8922275 input services against 61177 12936 12936 input tax credit against services 1095846 412364 412364 rcm (reverse charge mechanisam) 5293 44402 44402 capital goods input tax credit 1099080 1456883 1456883 net total input tax credit (raw material) 6548627 6995690 6995690 as per credit ledger a/c. as on 31/03/2020 balance 1914942 7257396 7281406 note : already refund received agianst export goods and service tax without payment of tax of the f.y. 2019-2020 (cgst rs. 2538356.00 + sgst rs. 2538356 = rs. 5076712.00) we was received export goods and service tax without payment of tax refund rs. 5076712.00 can less above refund from itc on raw material ? after how formula inverted tax structure refund calclulate ? pls gives us exact amount amount if inverted tax structure refund ..

ANSWER

Facts of the case: Calculation of Inverted tax structure refund.

Law applicable:

 CGST RULE 89
(4A)    In the case of supplies received on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 48/2017-Central Tax dated the 18th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1305 (E) dated the 18th October, 2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted.

(4B) Where the person claiming refund of unutilized input tax credit on account of zero rated supplies without payment of tax has '

    (a) received supplies on which the supplier has availed the benefit of the Government of India, Ministry of Finance, notification No. 40/2017-Central Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1320 (E), dated the 23rd October, 2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321(E), dated the 23rd October, 2017; or
   
    (b) availed the benefit of notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299(E), dated the 13th October, 2017,

the refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted.

(5) 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} - tax payable on such inverted rated supply of goods and services.


NOTE: For calculating the amount we need all the documentation and that will be out of our profile as a publisher of E-book. Through our platform, we can provide you reply to your technical question.

Our reply is as follows:

You can claim refund of unutilized ITC used for providing export supply. This included input and input service but not capital goods as specified in Rule 89(4A)/(4B).

You can claim refund against inverted tax structure but this is for Input-only and not for input service and capital goods as specified in Rule 89(5).

To save  GST cost on capital goods, you can go for EPCG License if you can achieve export obligation (Reply dt.01.10.2020)