TaxTMI 
TaxTMI 
Hi Professionals, my client had paid RCM for jobwork services and ITC has been availed. can we claim refund on such RCM paid?
Refund on RCM paid on Jobwork services
10 Feb 2024 
6 Replies 
1012 Views Asked by
Refund of tax paid under reverse charge requires ITC reversal before claiming refund as excess tax payment.
Refund of tax paid under the reverse charge mechanism on jobwork services requires reversal of any input tax credit availed before claiming refund as an excess payment of tax. The wrongly paid tax should be shown as a receivable until ITC is reversed and refund proceedings are initiated. Principal liability for compliance and tax payment in the jobwork context applies where goods/inputs are sent for job work, including when the supplier is unregistered. (AI Summary)
Refund of tax paid under the reverse charge mechanism on jobwork services requires reversal of any input tax credit availed before claiming refund as an excess payment of tax. The wrongly paid tax should be shown as a receivable until ITC is reversed and refund proceedings are initiated. Principal liability for compliance and tax payment in the jobwork context applies where goods/inputs are sent for job work, including when the supplier is unregistered. (AI Summary)