Claim GST Refund on Accumulated Input Tax Credit
In certain industries, GST paid on purchases is higher than GST charged on sales. This leads to accumulation of input tax credit, resulting in blocked working capital. Under GST law, businesses can claim refund of such accumulated credit under the Inverted Duty Structure provisions.
N D Savla & Associates provides complete GST refund support for inverted duty structure cases — from eligibility analysis and refund calculation to application filing and GST department follow-up.
What is Inverted Duty Structure under GST?
Inverted Duty Structure occurs when the GST rate on inputs (purchases) is higher than the GST rate on output supplies (sales). This results in unused input tax credit accumulation in electronic credit ledger.
Businesses facing inverted duty structure may claim GST refund of accumulated ITC (subject to GST provisions).
- Higher GST rate on raw materials or input services
- Lower GST rate on final products or services
- Continuous accumulation of input tax credit
- Working capital blockage due to ITC accumulation
Who Can Claim Inverted Duty GST Refund?
- Manufacturers with higher input GST rates
- Traders facing rate mismatch between purchase and sales
- Industries notified under inverted duty refund provisions
- Businesses with continuous ITC accumulation
Time Limit for Inverted Duty Refund Claim
- Generally within 2 years from relevant date
- Regular GST return filing is mandatory
Details Required for Inverted Duty Refund Filing
- GSTIN details
- Purchase invoice details
- Sales invoice details
- Input tax credit ledger details
- GST return filing details
Documents Required for Inverted Duty GST Refund
- GST return copies
- Purchase and sales invoice copies
- ITC ledger details
- Refund calculation working
- Bank account proof
GST Refund Process for Inverted Duty Structure (Step-by-Step)
- Verify eligibility under inverted duty provisions
- Review GST returns and ITC accumulation
- Prepare refund working and supporting documents
- File GST refund application
- Respond to GST department queries
- Track refund approval and credit
Common Reasons for Inverted Duty Refund Rejection
- Incorrect ITC calculation
- Mismatch between GST returns and refund claim
- Non-eligible input credit included
- Incorrect refund category selection
Why Choose N D Savla & Associates?
Accurate ITC Calculation
Proper refund working and documentation.
GST Refund Experts
Experience in handling inverted duty structure refunds.
Faster Processing
Quick filing and GST department follow-up.
End-to-End Support
From eligibility review to refund credit.
Compliance Guidance
Support for maintaining accurate GST records.
Trusted Advisory Support
Reliable GST and compliance advisory services.