ITC Refund on RCM Purchases

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This discussion addresses whether a registered person can claim a refund of Input Tax Credit (ITC) on purchases subject to Reverse Charge Mechanism (RCM), such as raw cotton. The user is experiencing accumulated ITC due to paying GST on RCM purchases, which exceeds their output tax liability, leading to blocked working capital. The advice provided is that a refund is possible if there are no exempt outputs and no inverted duty structure, allowing for the refund of accumulated ITC.

mulla hussain basha

mulla hussain basha (Querist)
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16 January 2021 as per Section 9(3) of the CGST Act, Purchases of Raw Cotton Subject to RCM.
my Doubt is Can a registered person Apply for Refund, the reason for asking this doubt is the RP paying every purchases made Raw Cotton as well other purchases which resulting into paying more GST and Out put GST tax liability was Less Compared to the ITC Available ( resulting from RCM paid and ITC Availed) this Resulting in to Blocking of working Capital in ITC Ledger ,

Is it Possible for Apply For Refund of ITC ??