GST Refund on Exempt service Provided.

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A client provided services to a Municipal Corporation and initially charged GST. However, due to an exemption under Notification 12/2017, they stopped charging GST. Now, the Municipal Corporation is deducting the GST amount from payments. The question is whether a refund of GST paid on these exempt services can be claimed, and if so, how. The consensus is that a refund is possible by filing online in Form RFD-01A, but the two-year limitation period must be considered.

PARTH SHAH

PARTH SHAH (Querist)

03 November 2020 Hello member,
I have a client who provide Pure Service to Municipal Corporation (M.C.). Earlier with introduction of GST Law they were raising invoice to M.C. with GST.
Municipal Corporation authorities claimed that they had never claimed Credit of GST as they are not liable to Pay GST.
M.C. were paying them with GST but after certain clarification they stopped Charging GST as they were not laible to charge GST for Service provided to M.C. according to Notification : 12/2017- Central Tax (Rate).
Now in current scenario M.C. are recovering the GST from their current Invoice and deducting the payment.
Is their any chance that we can get REFUND OF GST PAID ON EXEMPT SERVICE PROVIDED ? if yes then how ?
All your views are highly appreciated.
Thanks In Advance !
CA Parth Shah

Lekhraj sood

Lekhraj sood (Expert)

03 November 2020 For which period it relates too? Has the client filed their returns and paid the tax? What is the nature of service?

Lekhraj sood

Lekhraj sood (Expert)

03 November 2020 For which period it relates too? Has the client filed their returns and paid the tax? What is the nature of service?

PARTH SHAH

PARTH SHAH (Querist)

04 November 2020 Period From July 2017 to Mid of 2019. Yes they have Filled the return and paid the GST regularly.

Lekhraj sood

Lekhraj sood (Expert)

04 November 2020 Yes, you can file the refund claim on the portal.But the limitation period of 2 years is there.But I do not know what is the nature of work done by labour and if it is exempted.

PARTH SHAH

PARTH SHAH (Querist)

23 November 2020 Thanks for you reply.
is their any specific form for refund of Such transaction ?

Lekhraj sood

Lekhraj sood (Expert)

23 November 2020 yes,you have to file online in form RFD01A.

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