GST
Refund of excess tax paid in a return
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Facts
Once tax is set off in a return, it is no longer in the cash ledger. The overpayment can be adjusted in a later return where the law allows, or claimed under the refund category for excess payment of tax, within two years of payment under Sec 54(1).
Provisions and law
- Sec 54(1), CGST Act 2017Refund to be claimed within two years from the relevant date
- Rule 89, CGST Rules 2017Application for refund in RFD-01 with the prescribed statements
- Sec 39(9), CGST Act 2017Errors in a return are corrected in a later return, within the time limit
Analysis
If you reported a sale twice and paid ₹36,000 extra, first try to correct it through a credit note or amendment in the next return. If that is not possible, file RFD-01 under the excess payment category with the working. Keep the two-year limit in mind.
Conclusion
- Find the cause and amount of the overpayment
- Check if a later return can adjust it
- If not, file RFD-01 under excess payment of tax
- Attach the working and return copies
A Savvy can do this for you
Refund of excess cash ledger balance
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