Answer

GST

Refund of excess balance in the cash ledger

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  1. Facts

    Yes. Excess balance in the electronic cash ledger can be claimed as a refund through RFD-01 on the portal. You can also leave it for future payments.

  2. Provisions and law

    • Sec 54(1), CGST Act 2017Refund of tax or other amount, including excess balance in the cash ledger
    • Rule 87, CGST Rules 2017Electronic cash ledger in PMT-05, challan PMT-06 valid for 15 days, payment modes, CIN, PMT-07 for failed credits and PMT-09 transfers
  3. Analysis

    Example: you deposited Rs 50,000 twice for the same month and have Rs 50,000 extra. File RFD-01 choosing the excess cash ledger balance category and the amount by head. The amount is debited from the ledger on filing and refunded after approval. If you will need the money next month, leaving it may be simpler.

  4. Conclusion

    1. Check the cash ledger balance
    2. Decide whether to keep it or claim refund
    3. File RFD-01 under excess balance in cash ledger
    4. Track the refund status

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