Page 197 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] IN RE : SUPERNOVA ENGINEERS LTD. 115
which refund is claimed under sub-rules (4A) or (4B) or both;
and
(b) Adjusted Total turnover shall have the same meaning as as-
signed to it in sub-rule (4).]”
On plain reading of the provision and rules, Net ITC has been specifically de-
fined in the rule, which states that input tax credit availed on input during the
relevant period other than input tax credit pertain to zero-rated supply men-
tioned in Rule 89 of 4A & 4B. So the contention of the department regarding the
calculation of the net ITC after deduction of inverted rate purchase ITC i.e. lower
rated purchase is not sustainable. I find that net ITC has to be as per the defini-
tion mentioned in the above rule i.e. input tax credit availed on inputs during the
relevant period. Where there are multiple inputs attracting different rates of tax, in the
formula provided in Rule 89(5) of the CGST Rules, the term “Net ITC” covers the ITC
availed on all inputs in the relevant period, irrespective of their rate of tax. Also, in sup-
port of their claim, the appellants have submitted a worksheet which reflects all
the detail as per the prescribed formula. I have placed a scanned copy of the said
worksheet below, for better understanding;

Month Turn- Net ITC Adjusted Tax Refund Receivable Refund ARN No.
over of Total payable Receivable
Inverted Turnover on such as per
rated Inverted Online
supply of rated Application
goods supply of
goods
1 2 3 4 IGST CGST SGST 5=(1*2/3)-4

JULY’ 17 9216000 11631321 28699555 1658880 1975686 50242 50242 2076170 AB240717986104W
REFUND REJECTED 224199 50242 50242 324683
REFUND RECEIVED 1751487 0 0 1751487
AUG.’ 17 20850405 21269295 41101720 3754693 5219158 910231 147480 6276869 AB240817091902U
REFUND REJECTED 928546 829636 66885 1825067
REFUND RECEIVED 4290612 80595 80595 4451802
SEPT.’ 17 55695876 29322142 105808540 7956887 4934041 1271883 1271883 7477807 AB240917393266N
REFUND REJECTED 1945781 1271883 1271883 4489547
REFUND RECEIVED 2988260 0 0 2988260
OCT.’ 17 28534093 23895797 98809609 5136137 500286 632085 632085 1764456 AA241017915553F
REFUND REJECTED 0 632085 632085 1264170

REFUND RECEIVED 500286 0 0 500286
DEC.’ 17 47472358 69297518 101169321 5564874 24914837 1018713 1018713 26952263 AB241217270370H
REFUND REJECTED 2977958 1018713 1018713 5015384
REFUND RECEIVED 21936879 0 0 21936879
GST LAW TIMES  2nd July 2020  197