How to get back rcm tax amount

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This query is : Resolved

Gopalakrishnan. S (Querist)

03 October 2017 Sir,

One of my friend is trading in sale of Rice ( Non Branded ) and other exempted goods. He is paying rent for his premises and the landlord is not registered under GST. Now, for the payment of rent, he has admitted RCM and have paid the tax due on it. Since all his sales are with exempted goods, how can he get the reimbursement of tax paid on RCM ? Kindly explain.

RAJA P M

RAJA P M (Expert)

03 October 2017 He can claim it as Refund...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

03 October 2017 You can claim refund of RCM Tax paid on rent.

RAJA P M

RAJA P M (Expert)

03 October 2017 Dear CA RASHMI GHANDHI MAM,

MY ANSWER IS CORRECT OR NOT...???

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

03 October 2017 Yes correct

RAJA P M

RAJA P M (Expert)

03 October 2017 Thank you...... ....

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 October 2026 Refund is not available: tax paid under RCM is a genuine liability, and ITC on services used exclusively for exempt supplies is blocked u/s 17(2), so it is a cost; Sec 54 refunds cover only zero-rated supplies, inverted duty or excess/wrong payment. A trader making only exempt supplies need not register at all (Sec 23).

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