Rule 89 of CGST Rules 2017 explain Application for refund of tax, interest, penalty, fees or any other amount

As per  Notification No 26/2018 Central Tax Dated 13.06.2018 : CGST (Fifth Amendment) Rules 2018

with effect from 01st July, 2017, in rule 89, for sub-rule (5), the following shall be substituted, namely:-

“(5) In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.

Explanation:- For the purposes of this sub-rule, the expressions –

(a) Net ITC shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and

(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).”

Comment :   Thus Rule 89(5) is Changed w.e.f 01.07.2017 and not w.e.f 18.04.2018

Before the above Change Rule 89 (5) of CGST Rules 2017 [  Substituted by the Central Goods and Services Tax (Fourth Amendment) Rules, 2018, w.e.f. 18-4-2018 ] was as follow

[ (5) In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:—

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) × Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.

Explanation:—For the purposes of this sub-rule, the expressions—