REFUND OF GST PAID ON IMPORTED GOODS

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This discussion clarifies the process for claiming GST refunds on imported materials paid under the Reverse Charge Mechanism (RCM). While Input Tax Credit (ITC) can generally be claimed from the same month, the core question is about obtaining a cash refund for accumulated ITC. This arises when the GST paid on imports (18%) is higher than the tax rate on outward supplies (5%). The advice provided is to claim the refund under the inverted duty structure rules.

Hemkumar

Hemkumar

(Querist)
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23 November 2021 We have paid GST on Imported Material on RCM Basis. Whether we can claim refund of GST Paid on RCM Basis ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 November 2021 Yes, ITC can be claimed from same month.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 November 2021 Your question is not clear. Whether you have paid GST twice - once during import and once during filing GSTR-3B? or you have only paid during importation ?

Hemkumar

Hemkumar

(Querist)
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06 December 2021 We are claiming ITC of GST Paid on Import of Goods , but my question is whether we can claim refund in cash of such ITC ?? As Our outward supply is taxable at the rate of 5% while GST Paid on Imported Goods on RCM Basis is @ 18%, hence Can we claim Refund in cash of such accumulated ITC

CA Altamush Zafar

CA Altamush Zafar (Expert)
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06 December 2021 You will have to claim refund under inverted duty structure as per rules

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