Refund of GST-RCM

Save Share

This query is : Resolved

Quick Summary

If you're a doctor providing exempt services and paying GST under Reverse Charge Mechanism (RCM) for commercial property rent, you generally cannot claim a refund for this GST paid. Refunds of Input Tax Credit (ITC) are typically only available for specific situations like zero-rated supplies or inverted duty structures. Since your main service is exempt, the RCM paid on rent becomes a business cost rather than an eligible ITC for refund.

Sonu Khandare

Sonu Khandare (Querist)
Follow

17 July 2025 Hi All

Suppose my client is providing exempt services (doctor) registered under GST and liable to RCM as he is paying rent for commercial property. Will he get refund of GST for RCM paid on rental charges?

Thanks in Advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

18 July 2025 No, a doctor providing exempt services, will not get a refund of GST for RCM paid on commercial rental charges. Refunds of ITC are generally allowed in specific scenarios, such as zero-rated supplies (exports) or inverted duty structure (where the GST rate on inputs is higher than on output supplies). Because the primary business activity (doctor's services) is exempt, they cannot avail the benefit of ITC on this RCM paid amount, and therefore, cannot claim a refund for it. This RCM amount essentially becomes a cost for them.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

26 September 2025 Good luck...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now