GST REFUND OF ACCUMULATED CREDIT

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This query is : Resolved

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If your business has accumulated GST input tax credit due to paying GST on royalty charges under the Reverse Charge Mechanism (RCM), and you are now closing your business, you can claim a refund of this credit. This situation often arises in industries like mining where output supplies are taxed at a lower rate (e.g., 5%) while RCM payments on royalty are taxed at a higher rate (e.g., 18%), leading to credit accumulation.

Hemkumar

Hemkumar

(Querist)
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22 November 2023 WE HAVE ACCUMULATED GST INPUT CREDIT, WHICH IS DUE TO GST PAID ON ROYALTY UNDER RCM BASIS, NOW WE HAVE CLOSED OUR BUSINESS, CAN WE CLAIM REFUND OF ITC WHICH IS ACCUMULATED DUE TO PAYMENT OF TAX ON RCM BASIS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 November 2023 Why accumulations is it due to inverted duty.

Hemkumar

Hemkumar

(Querist)
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23 November 2023 we are in mining industry, our output supply is taxable @ 5% and we have to pay gst on royalty charges paid under RCM basis @ 18%, hence there is accumulated gst credit which we want refund

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 November 2023 Yes you can claim refund in such a case.

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