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

Refund of GST paid under reverse charge: liability payments via the liability form generally cannot be converted to ITC or refunded.
Payments of GST made under the Reverse Charge Mechanism via the liability payment form (DRC-03) discharge the RCM liability and are not credited to the electronic input tax credit ledger, so they generally cannot be converted to ITC. Excess tax deposited may be refundable, with the limitation period reckoned from the date of payment, but taxpayers should file a statutory refund application supported by a statement evidencing excess payment; if the ITC claim period has lapsed, credit is forfeited and refund options are limited.