CENVAT CREDIT ON INPUT SERVICES UNDER 100% RCM

[Guest]

Dear sir

1. We are manufacturer of exempted goods under excise duty (yarn, fabric and madeups).

2. we are exporting only madeups to foreign countries, where we claim the duty drawback

3. we sold yarn and fabrics within the country. here we cannot claim the dutydrawback

my question is 'can we claim the cenvat credit on input RCM service for the goods

a) sold within the country

b) sold outside the country

AI Summary

CENVAT Credit Not Available for Exempted Goods; Refund Possible for Export Inputs Under Rule 6, CENVAT Credit Rules 2004. A manufacturer of exempted goods, exporting made-ups and selling yarn and fabrics domestically, inquired about claiming CENVAT credit on input services under the Reverse Charge Mechanism (RCM) for domestic and international sales. Responses highlighted that CENVAT credit is not available for exempted goods as per policy and Rule 6 of the CENVAT Credit Rules, 2004. For exports, a refund of credit on input services is possible under certain rules. However, the discussion clarified that CENVAT credit under RCM is available to all businesses, not just manufacturers, but refund eligibility is limited to service providers.