HI SIR/MADAM,
MY QUERY IS
A (REGISTERED IN GST) FROM INDIA SUPPLY ONLINE ADVERTISEMENT SERVICES SPACE. HE PAY TO B (OUT OF INDIA) FOR SOFTWARE PLATFORM RENT WHICH WAS USED BY A.
A WAS PAID RCM ON SOFTWARE PLATFORM RENT AMOUNT @18% .
ON THIS RCM PAID BY A WAS REFUNDABLE OR NOT AND IF REFUNDABLE THEN WHAT BASIS PLEASE SUGGEST ME.
RCM Tax on Software Rent Non-Refundable; Claim Input Service Credit for Unutilized IGST on Zero-Rated Exports An individual from India, registered under GST, inquired about the refundability of Reverse Charge Mechanism (RCM) tax paid at 18% on software platform rent, used for supplying online advertisement services. An expert clarified that RCM paid is not refundable, but the individual can claim Input Service Credit of IGST paid under RCM. If the IGST credit remains unutilized due to zero-rated exports, a refund claim for the unutilized Input Tax Credit (ITC) is possible. Another participant confirmed this explanation, noting that the refund pertains to unutilized credit, not the IGST paid on import services under RCM. (AI Summary)
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