Reverse Charge

[Guest]

Can we avial tax credit in case of Reverse charge and if tax credit is not availed can the refund be claimed ??

If the refund can be claimed, what is the procedure ??

AI Summary

Tax Credit Eligibility Under Reverse Charge Mechanism: Cenvat Credit Rules and Refund Conditions Explained A discussion on a forum addressed whether tax credit can be availed under the reverse charge mechanism (RCM) and if a refund is possible if the credit is not availed. Participants clarified that under RCM, the recipient pays service tax via a GAR-7 challan, eligible for cenvat credit. Refunds are generally not available unless related to exports, where Rule 5 of CCR 2004 and Notification No. 41/2012-ST apply. It was noted that for non-export services, refunds are not eligible, but credit can be availed. Additionally, cenvat credit for the Swachh Bharat cess is not allowed.