Refund of RCM in case of Export of Services without payment of Tax, Goods and Services Tax - GST

[vishwanath shetty]

Taxpayer is in the business of Export of Services without payment of Tax. he had filed LUT in dec2023. in Jan 2024 he made RCM payment for import of services( Software purchase/ subscription fee). can he apply for refund of ITC on RCM.

Posts / Replies

[Sadanand Bulbule]

In terms of Section 16[2] of the IGST Act, a registered person making zero-rated supply is eligible  to claim unutilised ITC under RCM, subject to usaul condtions. So you are aslo eligible for refund of IGST paid under RCM on import of services. Refer CBCI Circular No.125/44/2019-GST dated 18/11/2019 for more clarification.