Inverted duty refund for input services under GST…end of uncertainty
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 29 September, 2021
Latest from Taxmann
Ganesh Kumar, Bhavik Thanawala & Rushabh Luhar – [2021] 130 taxmann.com 452 (Article)
Inverted Duty Structure refers to a situation where tax rate on input goods or services are higher than the tax rates on finished goods. The Rule 89(5) of CGST Rules provides the mechanism of calculating the refund of ‘Net ITC’ in case of inverted duty structure. It would be pertinent to note that the term ‘input services’ has not been included in the definition thereby, leading to a situation where the refund of input services cannot be availed by the claimants.
Recently, the Apex Court has held that Rule 89(5) of the CGST Rules is not ultra vires and upheld the validity of Rule 89(5), and therefore over-turns the industry favourable decision passed by the Gujarat HC. In this article, the authors has analysed the anomaly in Rule 89(5), decision of Apex Court and way forward.
Click Here To Read The Full Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
