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Rule 89(5) Refund Formula Under GST: From Litigation to Resolution?
The Goods and Services Tax (GST) framework in India is designed to avoid cascading taxes and enable smooth flow of input tax credit (ITC). However, refund mechanisms—particularly under inverted duty structures—have witnessed considerable litigation. At the centre of this controversy lies Rule 89(5) of the CGST Rules and its retrospective amendments, raising critical questions about fairness, legislative intent, and taxpayer rights..................... Read More
Concept of Inverted Duty Structure
Under GST law there are different types of GST rates like 5%, 12%, 18% & 28% etc. The applicable rate of tax on specific goods would depend upon the description of the goods/products. Similarly there are different rates of tax which are applicable of services depending upon the services. Since there are different type of rates, hence sometime the situation arises where the rate of tax on purchases of inputs are higher than the applicable........... Read More