Eye Share : Inverted duty structure - Anomalies and suggestions

The GST provides for a refund mechanism of unutilized ITC accumulated on account of GST rate on inputs being higher than the GST rate on output supplies. Further, Rule 89(5) of Central Goods and Services Tax Rules, 2017 prescribes a formula for calculating maximum refund amount in case of such inverted duty structure.Mr. Anuj Kakkar (Chartered Accountant) with the help of an illustration highlights the flaw in the above rule which results in a skewed computation of ...