https://www.taxtmi.com/forum/issue?id=118415 Input Tax Credit against taxes paid under the Reverse Charge Mechanism when those taxes were not payable has been treated in tribunal decisions as effectively constituting a refund of taxes erroneously paid and may be claimed as ITC; utilisation of such credit is regarded as reversal without further liability. However, where exemptions are conditional and a dealer was not under a legal obligation to claim them, taxes paid under RCM may not be deemed erroneous and ITC cannot be denied solely on the premise of erroneous payment. Tribunals examine the facts holistically when allowing credit as refund-equivalent. en-us Sat, 11 Mar 2023 14:34:22 +0530 Thu, 23 Jan 2025 15:54:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118415 Input Tax Credit against taxes paid under the Reverse Charge Mechanism when those taxes were not payable has been treated in tribunal decisions as effectively constituting a refund of taxes erroneously paid and may be claimed as ITC; utilisation of such credit is regarded as reversal without further liability. However, where exemptions are conditional and a dealer was not under a legal obligation to claim them, taxes paid under RCM may not be deemed erroneous and ITC cannot be denied solely on the premise of erroneous payment. Tribunals examine the facts holistically when allowing credit as refund-equivalent. Discussion-Forum GST Sat, 11 Mar 2023 14:34:22 +0530 https://www.taxtmi.com/forum/issue?id=118415