How to calculate GST with different raw materials

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... How to calculate GST with different raw materials
Query (Issue) Started By: - Sundaramoorthy Manickam Dated:- 6-9-2017 Last Reply Date:- 8-9-2017 Goods and Services Tax - GST
Got 5 Replies
GST
My product contains raw materials which attracts 5%, and 18% GST. My Final product GST % is 5 only. Sized cotton/viscose warp - 18% Cotton weft yarn - 5% Final Product Saree with 85% cotton a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nd other materiasl (HSN code 5208) is taxed at 5%. So finally ended up n making loss, any other way to overcome this problem? Reply By MARIAPPAN GOVINDARAJAN: The Reply: You may consult with the consultant in this regards. Reply By MADAN RAHEJA: The Reply: You can claim refund of accumulated credit arising on account of inverse tax structure under Section 54(3) of CGST Act. Reply By PAWAN KU .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... MAR: The Reply: Correct reply by Sh.Madan. You may apply for refund of ITC on account of input rate higher than output and for accumulation of ITC. Reply By Rajagopalan Ranganathan: The Reply: Sir, According to sub-rule (5) of Rule 89 of CGST Rules, 2017 "in the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... - Maximum Refund Amount = {(Turnover of inverted rated supply of goods) x Net ITC ÷ Adjusted Total Turnover} - tax payable on such inverted rated supply of goods Explanation.- For the purposes of this sub rule, the expressions "Net ITC" and "Adjusted Total turnover" shall have the same meanings as assigned to them in sub-rule (4). According to sub-rule (4) (B) of rule 89 of CGST Rules, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 2017 ""Net ITC" means input tax credit availed on inputs and input services during the relevant period." According to the same rule (89 (4) (E)) "Adjusted Total turnover" means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the value of exempt supplies other than zero-rated supplies, during the relevant period; Re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ply By Ganeshan Kalyani: The Reply: Yes refund is allowed in case of inverted tax rate structure.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X