Madras HC Directs to Allow Refund of Wrongly Paid GST under RCM, treating it as supply of “service”

The Madras High Court directed the refund of wrongly paid GST under Reverse Charge Mechanism (RCM), treating it as a supply of service. This clarifies the treatment of such incorrect payments and provides relief to taxpayers. The ruling emphasizes the importance of proper classification of transactions for GST purposes. This decision ensures that taxpayers are not penalized for genuine errors in RCM payments. It clarifies the process for rectifying such errors and claiming refunds.