Dear Sir,
A company is getting imported certain goods @ 18% IGST along with custom duty and its customers mainly include research organizations for whom GST payable is @ 5% GST(since research organizations receive exemption). is it eligible to claim refund ITC under RCM?Any circular or notification
plz update sir..
Yes as per Notification 45/2017 CT (r) :
Scientific and technical
instruments, apparatus,
equipment (including
computers); supplied to public funded research Institute the GST Rate is 5% .
Now come to your Query , In my view yes you are eligible to claim Refund on IDS.
As per Section 54(3) Refund of Unutilised ITC in case of IDS is available where ITC remains Unutilised even after setting off the output tax liability.
Import of Goods: The IGST is leviable on Import of Goods under the provision of Section 5 of IGST Act read with Section 3(5) of custom tariff Act 1975.
Now whether the IGST paid on Import cover under defination of ITC , the answer is Yes , if read the Definition of ITC under Section 2(62) , it includes the Section 5 of IGST Act .
Hence you are eligible to claim refund .
CAclubindia
