Undertaking & Submission for Refund of Accumulated ITC under Inverted Duty Structure

Prescribed Formats for GST Refund of Accumulated ITC Under Inverted Duty Structure: Undertaking, Application, Rule 89 Declaration and Certificate

The provided formats collectively lay down a comprehensive and structured framework for claiming refund of accumulated Input Tax Credit (ITC) arising from an Inverted Duty Structure under the GST regime. They are aligned with Section 54(3) of the CGST Act, 2017 and Rule 89 of the CGST Rules, 2017, and are intended to ensure procedural compliance, verification, and protection against unjust enrichment. The Undertaking format requires the applicant to affirm that the refund claim is legally valid, not duplicated, not adjusted against other liabilities, and that the incidence of tax has not been passed on to any other person, with a commitment to repay the amount with interest if found inadmissible. The Submission format outlines the formal intimation to the jurisdictional GST officer, enclosing the online refund application in Form GST RFD-01, invoice statements, statutory declarations, GST returns, and other supporting documents necessary for processing the claim. The Declaration under Rule 89(2)(l) specifically addresses the principle of unjust enrichment by confirming that the refund amount is rightfully due to the applicant and has not been transferred to another party. Finally, the Certificate format, to be issued by a Chartered Accountant or Cost Accountant under Rule 89(2)(m), provides independent professional verification of books and records, certifying that the refund represents genuine accumulated ITC due to an inverted duty structure and does not result in unjust enrichment. Together, these formats standardize documentation, enhance transparency, and facilitate timely and lawful processing of GST refund claims.

A. Format of Undertaking for Refund of Accumulated Input Tax Credit under Inverted Duty Structure

To,
The Jurisdictional GST Officer
[Office Address]

Subject: Undertaking for Refund of Accumulated Input Tax Credit under Inverted Duty Structure

Respected Sir/Madam,

I/We, [Name of the Applicant/Business], having GSTIN [GSTIN Number], registered under the Goods and Services Tax Act, hereby submit this undertaking in respect of refund claim filed under Section 54(3) of the CGST Act 2017 read with Rule 89 of the CGST Rules, 2017 for accumulated Input Tax Credit (ITC) on account of Inverted Duty Structure for the tax period [Month/Year to Month/Year].

I/We hereby undertake and declare that:

1. The refund amount claimed is strictly in accordance with the provisions of the GST law and rules.

2. The incidence of tax and interest has not been passed on to any other person, and the claim does not result in unjust enrichment.

3. The refund amount claimed has not been adjusted against any other liability and is not claimed elsewhere.

4. I/We shall repay the refund amount with applicable interest if it is found that the claim is inadmissible or wrongly sanctioned.

5. All information and documents submitted along with the refund application are true, correct, and complete to the best of my/our knowledge.

Place: [City]
Date: [DD/MM/YYYY]

Signature: ____________________
Name of Authorized Signatory: [Full Name]
Designation: [Proprietor/Partner/Director/Authorized Signatory]

B. Format of Submission for Refund Application under Inverted Duty Structure

To,
The Jurisdictional GST Officer
[Office Address]

Subject: Submission of Refund Application under Inverted Duty Structure

Respected Sir/Madam,

I/We, [Name of the Applicant/Business], having GSTIN [GSTIN Number], registered under the Goods and Services Tax Act, hereby submit the refund application for accumulated Input Tax Credit (ITC) on account of Inverted Duty Structure for the tax period [Month/Year to Month/Year].

In compliance with the provisions of Section 54(3) of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017, we enclose herewith the following documents for your kind consideration:

1. Refund Application (FORM GST RFD-01) duly filed online.

2. Statement of Invoices (inward and outward supplies) for the relevant period.

3. Declaration under Rule 89(2)(l) of CGST Rules, 2017.

4. Undertaking regarding non-passing of incidence of tax and unjust enrichment.

5. Copies of GST Returns (GSTR-1 and GSTR-3B) for the relevant period.

6. Any other supporting documents as required.

We request you to kindly process the refund claim at the earliest and oblige.

Place: [City]
Date: [DD/MM/YYYY]

Signature: ____________________
Name of Authorized Signatory: [Full Name]
Designation: [Proprietor/Partner/Director/Authorized Signatory]

C. Format of Declaration under Rule 89(2)(l) of CGST Rules, 2017

To,
The Jurisdictional GST Officer
[Office Address]

Subject: Declaration under Rule 89(2)(l) of CGST Act 2017

Respected Sir/Madam,

I/We, [Name of the Applicant/Business], having GSTIN [GSTIN Number], registered under the Goods and Services Tax Act, hereby declare that:

1. The incidence of tax, interest, or any other amount claimed as refund has not been passed on to any other person.

2. The refund amount claimed under Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017 is due to me/us and does not result in unjust enrichment.

3. I/We undertake to repay the refund amount along with applicable interest if it is found that the claim is inadmissible or wrongly sanctioned.

This declaration is made in compliance with Rule 89(2)(l) of the CGST Rules, 2017.

Place: [City]

Date: [DD/MM/YYYY]

Signature: ____________________
Name of Authorized Signatory: [Full Name]
Designation: [Proprietor/Partner/Director/Authorized Signatory]
Seal/Stamp of Business:

D. Format of Certificate in respect of refund claim under Section 54 of CGST Act, 2017

To,
The Jurisdictional GST Officer
[Office Address]

Subject: Certificate in respect of refund claim under Section 54 of CGST Act 2017

This is to certify that I/We have examined the books of accounts and other relevant records of M/s [Name of Applicant/Business], having GSTIN [GSTIN Number], in relation to the refund claim amounting to ₹ [Refund Amount] for the period [Month/Year – Month/Year] filed under Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017.

Based on the examination of the said records and information furnished, I/We hereby certify that:

1. The incidence of tax, interest, or any other amount claimed as refund has not been passed on to any other person.

2. The refund amount claimed represents accumulated Input Tax Credit on account of Inverted Duty Structure and is due to the applicant.

3. The claim does not result in unjust enrichment.

This certificate is issued in accordance with Rule 89(2)(m) of the CGST Rules, 2017.

Place: [City]
Date: [DD/MM/YYYY]

Signature of Chartered Accountant/Cost Accountant: ____________________
Name: [Full Name]
Membership No.: [Membership Number]
Seal/Stamp: