RCM paid to Author

[CA Adarsh]

1.A book publisher pays RCM on content provider Author and Books are nil rated.

2. Above ITC on RCM is eligible used further course of business.

Can I Claim refund of RCM in inverted duty structure as books are nil rated and all other input services are taxable for publishing of books?

AI Summary

Book Publisher Can't Claim GST Refund for Nil-Rated Books Under RCM, Experts Cite Section 54(3) CGST Act A book publisher inquired about claiming a refund on Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) for nil-rated books, while other input services are taxable. Multiple experts responded, citing Section 54(3) of the CGST Act, 2017, which excludes nil-rated supplies from refund eligibility under an inverted duty structure. They clarified that Input Tax Credit (ITC) on goods or services used exclusively for exempt supplies is ineligible, and without eligible credit, no refund can be claimed. The consensus was that the refund is not possible under the given circumstances.