As per Section
54(3), refund of accumulated ITC will be granted
where the credit accumulation has taken place on
account of inverted duty structure. However, the Government
also has the power to notify supplies where refund
of ITC will not be admissible even if such credit
accumulation is on account of an inverted duty
structure. In exercise of the powers conferred by
this section,
the government has issued Notification no.15/2017-Central
Tax (Rate) dated 28th June 2017 wherein it has
been notified that no refund of unutilised input tax
credit shall be allowed under sub-section (3) of section 54
of the said Central Goods and Services Tax
Act, in case
of supply of services specified in sub-item ( b) of item 5
of Schedule II of the Central Goods and Services Tax
Act. The supplies specified under item 5(b) of Schedule II
are construction services.
In respect of goods, the central government has issued Notification
no.5/2017- Central Tax (Rate) dated 28th June 2017. The
government has notified the following goods in
respect of which unutilized ITC will not be admissible as refund: -
Further, Rule 89(2)(h) of
CGST Rules, 2017 stipulate that refund claim on
account of accumulated ITC (where such accumulation
is on account of inverted duty structure) has to be
accompanied by a statement containing the number and
date of invoices received and issued during a tax
period. Rule 89(3) of CGST Rules, 2017 also provide
that where the application
relates to refund of input
tax credit, the electronic credit ledger shall be
debited by the applicant in an amount equal to the refund so claimed.
No comments:
Post a Comment