Q. 563 We are running a NBFC. Whether GST applicable on Prepayment charges received by NBFC on Loan repayment by Customers?

Ans. No, GST is not applicable.

Q. 562 Please advice here we are attaching two invoice of lift purchased and installation, but still we have not received the lift and thatway installation is pending. We had given advance to our supplier against purchasing of lift and installation cost in march-2022, but supplier has raise invoices as attached, but we have not booked lift in our assets till today because we have not received still And we have done follow up with supplier for reversing of invoice before filing of September return but they do not do, now supplier is reply to us as given yellow highlighted. Can we take input of gst now for attached invoice we have already filed our gstr-9 and 9c and also we have taken input of attached invoice ?

Ans. As per proviso, where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take input tax credit upon receipt of the last lot or installment.

Q. 561 The issue related to inverted duty refund case. The output tax liability is @ 5% and the ITC relates to mostly 18% which is approx. 98% of total purchases. The person is getting inverted duty refund without any problem till31/03/2022. The said goods came out of inverted duty structure w.e.f. 18/07/2022 and are made taxable @ 18%. Meaning thereby the said person is under inverted duty structure till 17/07/2022. The inverted duty refund was calculated till 17/07/2022 as per formula prescribed under rule 89. The manufacturing account as on 17/07/2022 has been provided wherein the closing stock is approx. 3 crore and balance ITC in ECL is Rs. 40 Lakh after debit of refund from ECL. The officers concerned has made to withdraw the refund as the same is not admissible on the one pretext or other. The clarity is required as under: 1. Whether there should be ITC in ECL in proportionate to closing stock i.e. 54 Lakh (18% of 3 crore closing stock) instead of 40 Lakh. 2. Whether ITC available for Rs. 54 lakh on closing stock of Rs. 3 crore will not qualify for ITC for calculation of inverted duty refund.

Ans. The GST common portal calculates the refundable amount as the least of the following amounts: a) The maximum refund amount as per the above formula specified in rule 89(4) or rule 89(5) [formula is applied on the consolidated amount of ITC, i.e. Central tax + State tax/Union Territory tax +Integrated tax]; b) The balance in the electronic credit ledger of the applicant at the end of the tax period for which the refund claim is being filed after the return in Form GSTR-3B for the said period has been filed; and c) The balance in the electronic credit ledger of the applicant at the time of filing the refund application.