GST
Minimum amount for a cash ledger refund
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Facts
Sec 54(14) says no refund is paid if the amount is less than ₹1,000. Small balances are better left in the ledger to pay future dues.
Provisions and law
- Sec 54(14), CGST Act 2017No refund is paid if the amount is less than ₹1,000
- Sec 49(6), CGST Act 2017Balance left in the cash or credit ledger after paying dues may be refunded under Sec 54
Analysis
If you are still in business, ₹700 will be used against next month's tax or late fee. If you are closing, it may not be worth a claim. Check the total across heads; the limit is applied to the claim amount.
Conclusion
- Total the excess across heads
- If under ₹1,000, use it for future dues
- If above, file one claim for all heads
A Savvy can do this for you
Refund of excess cash ledger balance
₹1,999
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