I am engaged exclusively in supply of exempt goods and services. I have paid GST under reverse charge mechanism on GTA Services and legal services. Whether I can get refund of the Input Tax Credit in respect of tax so paid?
Frah Saeed Changed status to publish June 5, 2020
As per Section 54(3) refund is permissible only in cases of zero rated supplies and inverted duty structure. No refund of credit is allowed to a person who is engaged exclusively in supply of exempt goods / services. Rather if such person is engaged in taxable as well as exempt supplies , pro rata ITC attributable to exempt supplies need to be reversed as per Rule 42 / 43 of the CGST Rules,2017.
Team Clearmytax.in
Frah Saeed Changed status to publish June 5, 2020