Next GST Council meeting to focus on ‘process reforms’, inverted duty structure fixes
The next meeting will take up issues arising with regards to inverted duty structure (IDS) of different sectors, officials say.
Tag: inverted duty structure
Restriction of IDS Refund on Edible Oils can’t be applied retrospectively for past period
The Hon’ble High Court of Jammu & Kashmir and Ladakh at Jammu in the case of Bharat Oil Traders held that amendment to Explanation (2)(e) Section 54 CGST Act, 2017 w.e.f. February 1, 2019 substituting “relevant date” for unutilized ITC refund u/s 54(3)(ii) inverted duty structure from “end of financial year in which claim arises” to “due date for furnishing return u/s 39 for period claim arises” operates prospectively and cannot retrospectively divest vested rights accrued pre-amendment.
FICO demands immediate release of GST refunds
The Federation of Industrial & Commercial Organisation (FICO) has slammed the Punjab government over prolonged delay in releasing GST refunds to manufacturers and commercial units. The industry body has demanded urgent intervention from the state leadership, warning that continued delays could push the industrial sector towards agitation.
GST DAILY – 498 : Refund under inverted duty structure cannot be denied merely due to the same rate on principal input and output: HC
THE HON’BLE KARNATAKA HIGH COURT IN THE CASE OF Indian Oil Corporation Ltd. V/s Assistant Commissioner of Central Tax, decided on 20-8-2024
GST Refunds under Inverted Duty Structure
Whether it is direct tax (or) indirect tax, the word “Refund” itself sounds so pacifying for the Registered person who is eligible to claim the same.
Circular Restricting ITC Refund Claims filed after July 18, 2022, IDS violative of Article 14 of the Constitution
The Hon’ble Rajasthan High Court in the case of Shree Arihant Oil and General Mills held that Circular No. 181 dated November 10, 2022, which restricts refund claims on ITC for applications filed after July 18, 2022, for goods under inverted duty structure such as mustard oil, is illegal, arbitrary, and violative of Article 14 of the Constitution, and inconsistent with Notification No. 09/2022-Central Tax (Rate) and Section 54 of the CGST Act, 2017.
MMF sector demands lower GST on raw materials
Textile units that recycle PET and the manufacturers of polyester fibre will face inverted duty challenges with the revised GST rates as the entire textile industry is under 5% GST while the raw materials for the manmade fibre (MMF) sector – Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) and PET scrap – are at 18%.
Unused ITC, inverted duty structure under review as govt explores GST relief
In an inter-ministerial review chaired by Cabinet Secretary TV Somanathan ahead of the September 22 rollout of GST reforms, officials discussed ways to deal with sectoral concerns over compensation cess, unused input tax credit (ITC), and the inverted duty structure, Business Standard has reported.
Tax experts welcome proposed two-tier GST, but caution on inverted duty structure
Tax experts have broadly welcomed the Centre’s proposal for a two-tier GST rate structure, saying it will simplify the system and boost consumption while cautioning that critical issues such as inverted duty structure need to be addressed for the reform to be fully effective.
SC dismisses Revenue’s SLP, allowing retrospective application of amended Rule 89(5) for IDS refund
The Hon’ble Supreme Court in the case of Union of India & Ors. held that no interference was warranted with the Gujarat High Court’s judgment granting refund based on the modified formula of Inverted Duty Structure (IDS) Refund under Rule 89(5) of the CGST Rules.