Refund of GST Paid on RCM for F.Y.17-18

[NISHANT SHAH]

Dear Experts,

We had paid GST as per RCM for F.Y.17-18 while filling annual return GSTR-9 through DRC-03.

My first question is that ,I want to know whether am i eligible to get refund of this tax by virtue of Section 54(3) of CGST Act read with Rule-89 of CGST Rules 2017. If so, what is time limit within which we may apply for refund?

Our tax consultant has submitted above comments in GSTR-9C (in Auditor's comment) stating that assessee is eligible to get above refund but ,

Rule 89(3) of CGST Rules, 2017 also provide that where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant in an amount equal to the refund so claimed. But while filling GSTR-3B, our CGST Credit Ledger balance automatically gets fully utilised by virtue of set-off rules so we would not be able to hold balance equivalent to CGST Refund amount which we are going to apply of RCM Paid tax. Now, how to claim refund of tax paid?

AI Summary

Inquiry on GST Refund Eligibility Under Reverse Charge Mechanism for FY 2017-18, Section 54(3), Rule 89. A participant in a discussion forum inquired about the possibility of obtaining a refund for GST paid under the Reverse Charge Mechanism (RCM) for the fiscal year 2017-18. The participant questioned eligibility for a refund under Section 54(3) of the CGST Act and Rule 89 of the CGST Rules, 2017. Multiple responses highlighted that RCM payments are liabilities and not typically refundable. Some experts noted that the time limit for claiming refunds is two years from the date of payment. The discussion revealed that the tax paid via DRC-03 does not reflect in the credit ledger, thus complicating the refund process.