ITC ON ROYALTY,LICENSE FEE,TENDER FEE

[MUKESH SAXENA]

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

AI Summary

Reverse Charge Mechanism denies inverted-duty refunds when tax paid as recipient is excluded from recipient turnover.
Input tax credit may be claimed for GST paid on input services under reverse charge, but refund under the inverted duty mechanism is unavailable where accumulated credit arises from input services or capital goods rather than inputs. When tax is paid under reverse charge and the recipient is treated as a deemed service provider, the taxable value on which tax was discharged under reverse charge is not treated as the recipient's turnover for purposes of inverted-duty refunds, supporting denial of refund claims.