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

Refund of input tax credit on reverse charge not available where outward supplies are nil-rated; apportionment rules govern mixed supplies.
ITC on reverse charge paid for content supplied for nil rated books is ineligible for refund under Section 54(3), which excludes nil rated outward supplies from the inverted duty structure refund mechanism. For mixed supplies, apportionment and reversal rules determine the portion of credit attributable to taxable supplies; amounts attributable to nil rated supplies are not refundable.