A person paid @ 18% on Tender Fee,License Fee and roylaty for khanan from river to khanan deptt and vikas nigam and he also pay GST @ 5% for Outpur Supply of RBM.
1- Can he claim ITC
2- If he claim refund of difference amount ITC-Output by inverted structure
3- SGST Deptt Officers are denying for refund, they are saying this activity by khanan deptt and vikas nigam is a service provided to you that comes under SAC-997337 means Licensing Service for Right to use minerlas including its exploration evaluation, So you are not eligible to take and refund ITC.
Please Suggest
Thanks
Input Tax Credit Claimable on Services, No Refund for Inverted Tax Structure; GST RCM Excluded from Turnover A person inquired about claiming Input Tax Credit (ITC) on GST paid at 18% for tender, license, and royalty fees, and whether a refund could be claimed due to an inverted tax structure, given the 5% GST on their output supply. Responses indicated that ITC can be claimed for input services but not refunded under the inverted duty mechanism, which applies only when input tax rates exceed output supply rates. SGST officers correctly denied the refund, as the GST paid under Reverse Charge Mechanism (RCM) is not part of the recipient's turnover but that of the service provider. (AI Summary)
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