GST
Moving minor heads before a refund claim
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Facts
PMT-09 lets you move cash between major heads and minor heads, such as interest to tax, within the same GSTIN. Combining amounts first can help you use them for liabilities and leave a cleaner refund.
Provisions and law
- Sec 49(10), CGST Act 2017Cash ledger amounts can be transferred between heads, and to a distinct person under the same PAN
- Rule 87(14), CGST Rules 2017Transfer of cash ledger amounts through PMT-09
Analysis
If ₹8,000 sits under CGST interest and ₹12,000 under CGST tax, and you owe CGST tax next month, move the interest balance to tax and use it. Claim refund only of what remains after expected dues.
Conclusion
- List cash balances by major and minor head
- Move amounts with PMT-09 to where they can be used
- Pay upcoming dues
- Claim refund of the remaining excess
A Savvy can do this for you
Refund of excess cash ledger balance
₹1,999
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