diff --git a/integration_tests/CMakeLists.txt b/integration_tests/CMakeLists.txt
index bcabdd6e57..0ce3958739 100644
--- a/integration_tests/CMakeLists.txt
+++ b/integration_tests/CMakeLists.txt
@@ -591,6 +591,7 @@ RUN(NAME structs_27          LABELS cpython llvm c)
 RUN(NAME structs_28          LABELS cpython llvm c)
 RUN(NAME structs_29          LABELS cpython llvm)
 RUN(NAME structs_30          LABELS cpython llvm c)
+RUN(NAME structs_31          LABELS cpython llvm c)
 
 RUN(NAME symbolics_01        LABELS cpython_sym c_sym)
 RUN(NAME symbolics_02        LABELS cpython_sym c_sym)
diff --git a/integration_tests/structs_31.py b/integration_tests/structs_31.py
new file mode 100644
index 0000000000..172c6e6408
--- /dev/null
+++ b/integration_tests/structs_31.py
@@ -0,0 +1,22 @@
+from lpython import packed, dataclass, i32, InOut
+
+@packed
+@dataclass
+class inner_struct:
+    a: i32
+
+@packed
+@dataclass
+class outer_struct:
+    b: inner_struct = inner_struct(0)
+
+def update_my_inner_struct(my_inner_struct: InOut[inner_struct]) -> None:
+    my_inner_struct.a = 99999
+
+def main() -> None:
+    my_outer_struct: outer_struct = outer_struct()
+
+    update_my_inner_struct(my_outer_struct.b)
+    assert my_outer_struct.b.a == 99999
+
+main()
diff --git a/src/libasr/codegen/asr_to_c_cpp.h b/src/libasr/codegen/asr_to_c_cpp.h
index e9610667f4..493227468d 100644
--- a/src/libasr/codegen/asr_to_c_cpp.h
+++ b/src/libasr/codegen/asr_to_c_cpp.h
@@ -2618,7 +2618,7 @@ PyMODINIT_FUNC PyInit_lpython_module_)" + fn_name + R"((void) {
                 }
             } else {
                 self().visit_expr(*x.m_args[i].m_value);
-                if( ASR::is_a<ASR::ArrayItem_t>(*x.m_args[i].m_value) &&
+                if( ASR::is_a<ASR::ArrayItem_t>(*x.m_args[i].m_value) ||
                     ASR::is_a<ASR::Struct_t>(*ASRUtils::expr_type(x.m_args[i].m_value)) ) {
                     out += "&" + src;
                 } else {