GST
Excess cash ledger refund queried by the officer
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Facts
Refund of excess balance in the cash ledger is straightforward, but the officer checks that the amount is genuinely excess and not needed for pending liabilities. Pending dues may be adjusted against the refund.
Provisions and law
- Sec 54(1), CGST Act 2017Refund of excess balance in the cash ledger
- Sec 54(10), CGST Act 2017Refund may be withheld or adjusted against unpaid dues
Analysis
Example: you claim Rs 1 lakh excess cash balance; the officer sees Rs 20,000 unpaid interest from an old return and proposes to adjust it. Either pay the interest or accept the adjustment. Explain how the excess arose, such as a double payment, with the challans. Clean liability registers make these refunds quick.
Conclusion
- Check the liability register for pending dues
- Clear or accept adjustment of dues
- Explain the source of the excess with challans
- Reply to any notice within 15 days
A Savvy can do this for you
Reply to refund deficiency memo RFD-03 and notice RFD-08
₹3,999
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