RCM TAX PAID ON IMPORT OF SERVICES

[JAGADISHKUMAR PATEL]

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.

AI Summary

Reverse Charge Mechanism IGST used as input tax credit may yield refund of unutilised ITC on zero-rated exports.
IGST paid under the Reverse Charge Mechanism on importation of services used to supply zero-rated exported services can be taken as Input Tax Credit; where that credit remains unutilised because exports are zero-rated without payment, the registrant may claim refund of the unutilised ITC rather than a direct refund of the IGST cash payment, and the appropriate refund form/procedure follows the refund mechanism for unutilised ITC on exports.