Refund of tax under RCM wrongly paid

[Atul Mehrotra]

Dear experts. Need your help with the following query-

A company having aggregate turnover less than ₹ 20 lakhs in the previous year availed some service from a govt. department (exempt vide S. No. 7 of Notification no. 12/2017 CT-R).

The company being unaware of this provision, deposited RCM on such supply in the relevant GSTR-3B and has no other taxable outward supplies (being an electricity distribution company). Is it possible to claim refund in this case?

AI Summary

Refund of wrongly paid reverse charge tax where incidence not passed on may be claimed under GST provisions
A registered person who paid tax under the reverse charge on a supply that was exempt for small business recipients may claim refund where the tax was not lawfully leviable and the incidence was not passed on. Relevant refund heads include payments on supplies not taxable and amounts not borne by any other person. Arguments invoked include exemption wording tied to recipient turnover, constitutional limits on taxation, potential inapplicability of ordinary time bar where the payment was a deposit, and the need to contest any written refusal by directly addressing departmental reasons.