Refund of Interest and Reversal of input tax credit

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Reversal of input tax credit with Refund of Interest?

Difference between Refund of Interest and Reversal of input tax credit under GST terms

What is Reversal of input tax credit? How does Refund of Interest work under GST regime? What are the difference between Reversal of input tax credit and Refund of Interest?

“Refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit due to a higher tax rate on the input than the output.

A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnish the details of such supply, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of the issue of the invoice:

The details about Reversal of input tax credit and Refund of Interest with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Reversal of input tax credit and Refund of Interest, so as to enable you to have a clear idea on these shipping terms.

For your immediate reference, we give below web links on Reversal of input tax credit and Refund of Interest separately below. You may kindly read the below links to know more about Refund of Interest and Reversal of input tax credit.

Term Reversal of input tax credit in the case of non-payment under GST

What is Refund of Interest under GST

The above information easily explains about Refund of Interest and Reversal of input tax credit.

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CGST Act Section 144 Presumption as to documents in certain cases

CGST Act Section 145 Admissibility of micro films, facsimile copies of documents

CGST Act Section 146 Common Portal

CGST Act section 147 Deemed Exports

CGST Act Section 148 Special procedure for certain processes

CGST Act section 149 Goods and services tax compliance rating

CGST Act Section 150 Obligation to furnish information return

CGST Act section 151 Power to collect statistics

CGST Act Section 152 Bar on disclosure of information