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GST

Refund of excess tax paid in a return

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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

Sec 54(1), CGST Act 2017; Rule 89, CGST Rules 2017; Sec 39(9), CGST Act 2017

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.

Close

  1. Find the cause and amount of the overpayment
  2. Check if a later return can adjust it
  3. If not, file RFD-01 under excess payment of tax
  4. Attach the working and return copies

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Connect nowPay and start: Refund of excess cash ledger balance, ₹1,999

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