Latest Query & Reply

We are manufacturing Air Dryer (Machinery) HSN Code is 8419 and 8421 under 18% GST rate. We collect GST from customer 18%.
Our Raw material purchase for manufacturing above machine against different GST rate. One raw material against 5% , 12%, 18% and 28%.
So, please clarify can we claim total 28% raw material purchase from our supplier or we have to reverse 10% difference GST in our ITC.

 Reply

In this case, there is no need to reverse ITC. As per my opinion as you are a manufacturer, the presence of value addition will increase the output tax liability and the different rate of inputs will not cause a situation where the input tax credit is higher than output tax liability.

Further if still input tax credit is more than output tax liability, you can claim refund by filing RFD-01 of unutilized input tax credit.