Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification

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..... entral Circular No. 173/05/2022-GST ) DATED: 26.07.2022 Subject: Clarification on issue of claiming refund under inverted duty structure where the supplier is supplying goods under some concessional notification Various representations have been received seeking clarification with regard to applicability of para 3.2 of the Trade Circular No. 06/2020 dated 21.04.2020 in cases where th .....

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..... (ii) of sub-section (3) of section 54 of the WBGST Act is available where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies. It is noteworthy that, the input and output being the same in such cases, though attracting different tax rates at different points in time, do not get covered under the provisions of clause (ii) of sub-sectio .....

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..... r clause (ii) of sub-section (3) of section 54 of the WBGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax on inputs (same goods) at the same point of time, as per some concessional notification issued by the Government providing for lower rate of tax for some specified supplies subject to fu .....

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..... e under a concessional notification due to which the rate of tax on output supplies is less than the rate of tax on inputs. In such cases, as the rate of tax of output supply is less than the rate of tax on inputs at the same point of time due to supply of goods by the supplier under such concessional notification, the credit accumulated on account of the same is admissible for refund under the pr .....

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