CASH PAID ON WRONG RCM

[KERAGODEGOPALARAO ANANTHARAO]

We have RCM on expenses which are not covered under GST. We availed credit of RCM paid as it's paid in cash. In audit it's an objection as wrongly claimed as such to the extent of RCM claimed to be paid again. Is it correct?

AI Summary

Input tax credit on wrongly paid reverse charge: treatable as refund or credit preserving revenue neutrality, subject to procedure and appeal.
Cash paid under the reverse charge mechanism for supplies later found non-taxable raises whether input tax credit may be claimed; one line in the discussion accepts audit objection and stresses procedural correction, while others argue that such credit functions as a refund of erroneously paid tax preserving revenue neutrality, relying on precedent and recommending appeal when adjudication is adverse.