Question ID :
44606
082701
A cloth manufacturing firm does trading also of certain goods having different HSN. GST on cloth is 5% and on yarn is 12% How to calculate Inverted Turnover for the purpose of refund Whether it should be calculated from turnover only or input value of different HSN's will also be considered assuming input comprising of different HSN is sold
Posted by
Mahesh Kumar
on
Feb 10, 2024
Filed Under
GST
The refund on account of Inverted Duty Structure shall be calculated in accordance with Rule 89(5) of the CGST Rules 2017,
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 x (Net ITC÷ ITC availed on inputs and input services)
For the above formula, meanings of different terminologies are as follows;
a) 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; and
b) "Adjusted Total turnover” and “relevant period" shall have the same meaning as assigned to them in sub-rule (4)]
Posted by
SREENIVASULU THULASIRAM on
Feb 11, 2024