I am packer of tea in which i puchase tea at 5% tax rate and also purchase packing material for that at 18% and Sale that on 5% thats why excess ITC accumulated in my legder. Can I take Accumulated ITC refund for tax period F.Y. 2017-18 & 2018-19.

Reply—As per Circular No.79/53/2018, it is clarified that the input tax credit of the GST paid on inputs shall be available to a registered person as long as he/she uses or intends to use such inputs for the purposes of his/her business and there is no specific restriction on the availment of such ITC anywhere else in the GST Act. The GST paid on inward supplies of stores and spares, Packing materials etc. shall be available as ITC as long as these inputs are used for the purpose of the business and/or for effecting taxable supplies, including zero-rated supplies, and the ITC for such inputs is not restricted under section 17(5) of the CGST Act.

As packing material is covered under ''inputs", refund can be claimed under inverted duty structure.