Corrugated Packaging Industry: GST Refund Strategies For Inverted Duty Structure

Corrugated packaging manufacturers face a classic inverted duty structure post-56th GST Council reforms, with output GST on boxes slashed to 5% from 12%, while inputs like kraft paper rose to 18% from 12%. This blocks significant ITC (up to ₹13,000 per lakh turnover), prompting urgent refund claims under Section 54(3)(ii). GetMyCA offers expert strategies for seamless GST refunds and compliance.

Rate Changes Overview
Corrugated boxes/cartons (HSN 4819): 12% → 5% GST.

Kraft paper/paperboard inputs: 12% → 18% GST.

Results in ITC accumulation; affects 20,000+ MSMEs.

Refund Strategies
Claim unutilised ITC via Form RFD-01 using Rule 89(5) formula: (Turnover of inverted supplies ? Net ITC ? Adjusted total turnover) - tax on inverted supplies. File GSTR-1/3B timely; 90% provisional refunds available for zero-rated exports; process within 2 years. Ensure documents like invoices, returns; monitor portal for ARN and approvals.

GetMyCA Support
GetMyCA specializes in GST refunds for packaging/pharma/footwear, handling inverted structure claims since 2015 with APOB/VPOB options. Fast, competitive services optimize liquidity for exporters. Contact https://www.getmyca.com/ for classified submissions and consultations.
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