Find
Refund of ITC on an inverted duty structure, where input tax rate is higher than output tax rate, needs specific statements, including invoice-wise details of inward and outward supplies. Missing statements lead to RFD-03.
GST
Refund deficiency for an inverted duty structure claim
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Provisions
Sec 54(3)(ii), CGST Act 2017; Rule 89(5), CGST Rules 2017; Rule 90, CGST Rules 2017
Analysis
Example: a fabric maker buys yarn at 12 percent and sells fabric at 5 percent and claims Rs 3 lakh refund. RFD-03 says Statement 1A with invoice-wise inward supplies was not uploaded. Download the template from the portal, fill it, and refile. Credit on input services and capital goods is not part of this refund, so remove it from the computation.
Close
- Download Statement 1 and 1A templates
- Fill invoice-wise inward and outward details
- Recompute using the Rule 89(5) formula
- Refile RFD-01 with all statements
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