2026-VIL-124-GSTAT-KOL
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SGST Tribunal

GST - Refund of accumulated Input Tax Credit under inverted duty structure - Section 54(3)(ii) of CGST Act, 2017 read with Rule 89(5) of CGST Rules, 2017 - Determination of correct value of turnover of inverted rated supply of goods and services and adjusted total turnover for computing admissible refund - Revenue appeal before the Tribunal contending that the FAA wrongly considered outward supplies attracting GST at 5% only for computing adjusted turnover, whereas the respondent-assessee had also issued certain outward supply invoices attracting GST at 18%, resulting in sanction of excess refund - Whether the value of outward supplies attracting GST at 18% ought to have been included in the adjusted total turnover for computing the admissible refund under Rule 89(5) of the CGST Rules, 2017 - HELD - On plain reading of the formula under Rule 89(5), the value of inverted rated supply of goods and services along with adjusted total turnover are relevant for determining the correct value of admissible refund - The first Appellate Authority has not mentioned any outward supplies at 18% and has taken all outward supplies at 5% tax rate only - The Revenue has not produced any evidence or documents of the outward invoices where GST was charged at 18%. In absence of such evidence, it is not clear whether the respondent dealt only in 5% tax rated goods or also in 18% tax rated goods, and without this issue being addressed, the correct refund amount cannot be ascertained - The matter is remanded back to the first Appellate Authority for determination of the correct amount of inverted rated supply of goods and services, aggregate turnover and the admissible amount of refund under the inverted duty structure, with a direction that the Revenue shall produce the relevant documents relating to 18% outward supplies, reasonable opportunity be granted to both parties - The appeal is disposed of by way of remand
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