REFUND OF GST AGAINST INVERTED DUTY STRUCTURE

[SAFETAB LIFESCIENCE]

Dear Experts,

We have obtained refund of accumulated GST against inverted duty structure in March-2018 for the period of earlier months. The refund included ITC credited against goods (inputs) and services. Now we have been instructed to repay the refund received against input services against Notification No. 26/2018 dt. 13.06.2018 retrospective effect from 01.07.2017.

Now, my query is shall reverse the demanded amount from Electronic Credit Ledger today as I have sufficient balance now or I have to pay only in Cash Ledger. I think this reversal of GST is eligible for re-credit of ITC as the Department has not denied the credit and denied only the refund. If I pay cash in Cash Ledger, shall I use the amount for offset of GST payment immediately in the same month itself.

AI Summary

Repayment of refunded GST should not be made without formal written demand to avoid improper re-credit or double credit.
Repayment of a sanctioned refund following retrospective amendment should not be made on verbal instruction; a written departmental demand or SCN is required. Voluntary repayment may be made from the Electronic Cash Ledger, but funds cannot be converted into Electronic Credit Ledger balance by simple transfer; re-credit of ITC depends on formal refund/rejection procedures (RFD forms and Rule 93) and documentary proof of deposit if re-credit is sought. Taking credit twice risks double crediting, so secure written departmental direction before adjustment.