Refund claims for service tax paid under reverse charge on foreign-currency royalty fall to be processed under the existing service-tax law through the transitional mechanism in section 142(3) of the CGST Act, even where the tax was deposited after GST implementation. This treatment preserves the applicability of the pre-GST refund framework to service tax paid under the Finance Act. Cash refund of the reverse-charge service tax is therefore admissible, rather than being denied solely because payment occurred after the GST transition.
Refund claims for service tax paid under reverse charge on foreign-currency royalty fall to be processed under the existing service-tax law through the transitional mechanism in section 142(3) of the CGST Act, even where the tax was deposited after GST implementation. This treatment preserves the applicability of the pre-GST refund framework to service tax paid under the Finance Act. Cash refund of the reverse-charge service tax is therefore admissible, rather than being denied solely because payment occurred after the GST transition.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4902 
