The Commercial Taxes Department, Tamil Nadu on September 02, 2022 has issued clarification regarding cases where the supplier is required to supply goods at a lower rate under Concessional Notification issued by the Government.
The following has been stated namely: -
• Refund on account of inverted duty structure would not be admissible in cases where the input and output supply are the same.
• Refund of accumulated input tax credit on account of inverted structure as per clause (ii) of sub-section (3) of section 54 of TNGST Act, 2017 would be allowed in cases where accumulation of input tax credit is on account of rate of tax on outward supply being less than the rate of tax for some specified supplies subjected to fulfillment of other conditions.
[Notification No. 10/2022 – TNGST]
