Remedy to the bottleneck of the GST ITC accumulated on account of Inverted Duty Structure

Jacky Bhansali – [2022] 137 taxmann.com 499 (Article)

Section 54 of CGST, 2017 provides the refund of unutilized input tax credit where the credit is accumulated on the account of tax rate on inputs being higher than the tax rate on output supplies. Moreover, the law clearly denies the refund of tax paid on input services and capital goods as part of refund of input tax credit accumulated on account of inverted tax structure. In this article, the author has discussed the remedy to the bottleneck of the ITC accumulated on account of Inverted Duty Structure with help of practical examples and GST provisions.

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