CA Umesh Sharma

CA Umesh Sharma

Arjuna (Fictional Character): Krishna, what would happen of the amount paid to Government by mistake or if paid but under wrong head?

Krishna (Fictional Character): Arjuna, due to technical issues taxpayers have paid wrong amount to the government. Sometimes they pay excess amount. In that case i.e Amount is paid in excess of actually payable to the Government’s treasury, then we will get ITC for that in next tax period. But if there is no liability to set off the ITC, then that amount will be refunded to the taxpayer.

Arjuna: Krishna, What are the situations which leads to claim the refund from government?

Krishna: Arjuna, following are the situations which will lead to claim of refund from the Government:

1. Export of goods or services

2. Supplies to SEZs units and developers

3. Deemed exports

4. Refund of taxes on purchase made by UN or embassies etc.

5. Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court

6. Refund of accumulated Input Tax Credit on account of inverted duty structure

7. Finalization of provisional assessment

8. Refund of pre-deposit

9. Excess payment due to mistake

10. Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India

11. Refund on account of issuance of refund vouchers for taxes paid on advances against which, goods or services have not been supplied

12. Refund of CGST & SGST paid by treating the supply as intrastate supply which is subsequently held as inter-State supply and vice versa

GST Refund

Arjuna: Krishna, what is the procedure to claim the refund?

Krishna: Arjuna, to claim refund, following three things to be remember and following procedure is to be initiated as per given case:

1. Refund of IGST paid on export of goods – No separate application is required as shipping bill itself will be treated as application for refund

2. Refund of IGST paid on export of services / zero rated supplies to SEZ units or SEZ developers – Printout of FORM GST RFD01A needs to be filed manually with the jurisdictional GST officer along with relevant documentary evidences, wherever applicable

3. Refund of unutilized input tax credit due to the accumulation of credit of tax paid on inputs or input services used in making zero-rated supplies of goods or services or both – FORM GST RFD-01A needs to be filed on the common portal of GSTN. The amount of credit claimed as refund would be debited in the electronic credit ledger and proof of debit needs to be generated on the common portal. Printout of the FORM GST RFD- 01A needs to be submitted before the jurisdictional GST officer along with necessary documentary evidences, wherever applicable

Arjuna: Krishna, when and how much refund will be granted by the Government?

Krishna: Arjuna,

1. GST law also provides for grant of provisional refund of 90% of the total refund claim, in case the claim relates for refund arising on account of zero rated supplies.

2. The provisional refund would be paid within 7 days after giving the acknowledgement.

3. The acknowledgement of refund application is normally issued within a period of 14 days but in case of refund of integrated tax paid on zero rated supplies, the acknowledgement would be issued within a period of three days.

4. The provisional refund would not be granted to such supplier who was, during any period of five years immediately preceding the refund period, was prosecuted.

Arjuna: Krishna, what lesson the taxpayer should take from GST?

Krishna: Arjuna, there are many procedures which still needs to be completed under the GST regime. The working capital of taxpayer is decreasing as the amount is deposited with the government. So doing business becomes a difficult task. Because of this, the government has brought this option i.e to claim refund. Until and unless this process of filing application becomes online it would be very difficult to get refund. The taxpayers who are willing to claim refund, shall claim the same after understanding the new provisions relating to refund. But when the refund will be received by them , God only knows!

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36 Comments

  1. Sunita Mahajan says:

    can we transfer GST amount to tax heade which is wrongly paid under fees head how can we claim refund? We are same paid amount under tax heade for few days.

  2. venkat says:

    assessee claims refund on exports and deptt has granted 90% of refund, and after noticed assessee also claimed drawback and received sanctioned mounts of drawback and assessee agrees the same.Now refund sanctioned is irregular needs to be recovered with interest from assessee. Is there any provision to impose penalty for wrong refund claim

  3. S K ASTHANA says:

    Suppose my GST No is 22AACF5230LST1 AND WRONGLY DEPOSITED IN gst nO 22ABCF5230LST1. How can I claim or get rtefund of the same. Please guide

    1. G.S.Jawale Excise Consultant says:

      Sir
      We have wrongly deposited rs
      73000/- under Cess.The Balance is appearing in
      credit Ledger.How to make refund
      Please guide. with regards.
      Thanking you.

  4. Vishal says:

    Dear Sir,
    I have generated RFD 01A for the month of January, 18, amounting to Rs 1,80,000/- instead of 2,00,000/-.
    Now for the balance Rs 20,000/- , system is showing message that “An application of Refund already exists for this tax period”.
    Please let me know how should I claimed the balance amount of Rs 20,000/-.

  5. Bhanu Chandra says:

    I have paid GST under RCM in excess as per GSTR 3B but GSTR 1 is filled for correct amount, that difference amount is not reflected in electronic cash ledger or credit ledger. Now how can i claim it back ?”

    1. Vishal says:

      Dear Sir,
      I have generated RFD 01A for the month of January, 18, amounting to Rs 1,80,000/- instead of 2,00,000/-.
      Now for the balance Rs 20,000/- , system is showing message that “An application of Refund already exists for this tax period”.
      Please let me know how should I claimed the balance amount of Rs 20,000/-.

  6. BHANU CHANDRA says:

    We paid GST in excess as per GSTR 3B but GSTR 1 is filled for correct amount, that difference amount is not reflected in electronic cash ledger now how can i claim it back ?”

  7. chandrasekharachari says:

    We paid GST in excess as per GSTR 3B but GSTR 1 is filled for correct amount, that difference amount is not reflected in electronic cash ledger now how can i claim it back ?”

  8. Rajiv Goyal says:

    Sir I have wrongly transferred of Rs. 8850/- into the account of other party CPIN Challan and same has been debited in my registered bank account vide UTR . How can refund the same please resolve this issue .
    waiting your reply.
    Thank,
    Rajiv Goyal

  9. shiba samantaray says:

    On the month of October ,in GSTR 3B in point no-3.1 tax on out ward & reverse charge inward supplies coloumn ..I put SGST Rs.146456.00 and CGST 146456.00 by mistake ,where as actual was CGST Rs.73,228 and SGST Rs.& & 73,228 .00
    so for the entire process I settled the liabilities from input tax credit of Rs. 195432.00 and cash payment of Rs.97,480.00 ..
    sir,pls guide me ..how i could get my entire cash payment money as well as my input tax tax credit from the department .
    pls guide

  10. Ravi Kiran says:

    excess payment / wrong payment of GST will remain in cash ledger only and will not be shown in credit ledger; so it can’t be claimed as ITC in next tax period. Refund is the only way out if the amount can’t be utilised for payment of tax in subsequent tax periods. Procedure for refund on payment of excess tax needs to be followed and not the refund of excess credit as in case of exports / SEZ supplies or inverted duty structure.

  11. Subhashis Pyne says:

    I have paid by mistake CGST instead of IGST. RS 9,34,336.
    Again I have paid IGST same amount.
    What is procedure it refund or adjustment to next period.

  12. Manish Shah says:

    Dear Umeshji
    Read your article on refunds under GST with great interest.

    Kindly advise who will be the Jurisdictional Officer from whom refund can be claimed in following cases:

    1.In case of finalisation of Provisional assessement of Bills Of Entry in which duty (IGST) has been paid to Customs?

    2. In cases arising due to orders by Appellate authorities in respect of imports made in which the IGST has been paid to Customs?

  13. Zack says:

    Sir I have one doubt can u plz help me with it ??,
    Suppose I have to pay CGST & SGST of 10000 each and while making payt instead of SGST the payt was made in cess ledger so now how I can claim refund of this ??

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