{"id":26180,"date":"2022-04-07T07:26:04","date_gmt":"2022-04-07T01:56:04","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=26180"},"modified":"2022-04-14T05:31:34","modified_gmt":"2022-04-14T00:01:34","slug":"calculation-of-refund-amount-in-case-of-inverted-duty-rate-under-gst","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/calculation-of-refund-amount-in-case-of-inverted-duty-rate-under-gst\/","title":{"rendered":"Calculation of refund amount in case of inverted duty rate under GST"},"content":{"rendered":"<p>Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies, refund can be applied under Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017.<\/p>\n<p>Please advise how wiil we calculate the eligible refund amount in the following case wherein at the end of the tax period there is closing stock much higher than the sale of goods.<\/p>\n<p>For Example<\/p>\n<p>Information Pertaining to Inward Supplies<\/p>\n<p>Particulars \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Value \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rate of GST \u00a0\u00a0\u00a0 GST Amount<\/p>\n<p>Inward supplies\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs 100 Lakhs \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 18% \u00a0\u00a0\u00a0 Rs 18.00 Lakhs<\/p>\n<p>Inward supplies \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs 300 Lakhs \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28% \u00a0\u00a0\u00a0 Rs 84.00 Lakhs<\/p>\n<p>Total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 350 Lakhs \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs 102.00 Lakhs<\/p>\n<p>Note:- Both types of inward supplies were used for manufacturing of outward supply attracting GST @5%.<\/p>\n<p>&nbsp;<\/p>\n<p>Information Pertaining to Outward Supplies<\/p>\n<p>Particulars \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Value \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rate of GST \u00a0\u00a0\u00a0 GST Amount<\/p>\n<p>Turnover of Inverted Rated Supply. \u00a0\u00a0\u00a0\u00a0 Rs 125 Lakhs \u00a0 5%\u00a0 Rs 6.25 Lakhs<\/p>\n<p>Turnover of Other Supplies. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs 10 Lakhs \u00a0\u00a0\u00a0 28%\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Rs 2.80 Lakhs<\/p>\n<p>Total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs 135 Lakhs \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs 9.05 Lakhs<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[340],"qa_category":[69],"qa_tag":[192,250],"class_list":["post-26180","qa","type-qa","status-publish","hentry","qa_expert-advocate-c-b-thakar","qa_category-gst","qa_tag-gst","qa_tag-refund"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/26180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=26180"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=26180"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=26180"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=26180"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=26180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}