Explained: The impact of GST inverted duty structure on a business

Under GST, the term 'Inverted Tax Structure' refers to a situation where the rate of tax on inward supplies (purchases) is more than the rate of tax on outward supplies (sales). In simple terms, the GST rate paid on purchases is more than the GST rate payable on sales. Taxpayers who face an inverted duty structure will always have GST Input Tax Credit (ITC) in their GST electronic credit ledger ev…