TaxTMI 
TaxTMI 
Taxpayer is in the business of Export of Services without payment of Tax. he had filed LUT in Dec 2023. in Jan 2024 he made RCM payment for import of services (Software purchase/ subscription fee). can he apply for refund of ITC on RCM.
Refund of RCM in case of Export of Services without payment of Tax
07 Jun 2025 
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Refund of input tax credit on RCM may be available for zero-rated service exports, subject to conditions and period selection
A registered supplier making zero-rated supplies under a filed Letter of Undertaking may claim refund of unutilised input tax credit arising from IGST paid under the reverse charge mechanism on import of services, subject to statutory conditions and calculation rules; CBIC Circular No.125/44/2019-GST clarifies that refunds under the inverted tax structure do not include tax on input services or capital goods, and selection of the refund period will affect the refundable amount. (AI Summary)
A registered supplier making zero-rated supplies under a filed Letter of Undertaking may claim refund of unutilised input tax credit arising from IGST paid under the reverse charge mechanism on import of services, subject to statutory conditions and calculation rules; CBIC Circular No.125/44/2019-GST clarifies that refunds under the inverted tax structure do not include tax on input services or capital goods, and selection of the refund period will affect the refundable amount. (AI Summary)