Wrong entry of tax amount in cess instead of CGST/SGST - Refund claimed

[Mr Rao]

Sir,

I have wrongly entered my tax amount under Cess head instead of CGST and SGST. Later I applied for refund of the same with the Department through online. However, while entering the Grounds of refund claim I mentioned as ‘Any other (specify) reason in Form GST RFD-01A. The department is telling that the amount is lying in the Balance of Cess column and no refund can be granted unless the same is debited in the cash ledger. What is the remedy for me now sir.

[Shilpi Jain]

You should be able to get the refund of such wrong deposit in the cash ledger. Pls write to the higher authorities that wrong payment has been made in the cash ledger which should be refunded as the facility of using the same to pay other taxes (CGST, SGST, IGST) is presently not available but has been proposed in the budget amendments. In the absence of such facility the refund shall be granted.

[Ganeshan Kalyani]

If you have paid the tax it should appear in electronic cash ledger. The copy of cash ledger should suffice to satisfy the department and claim should be allowed. Hope you have submitted the hard copy of the refund application along with the proof.

[YAGAY and SUN]

https://www.thehindubusinessline.com/economy/gst-hc-allows-adjustment-of-wrong-payment/article25519774.ece

[Mr Rao]

Dear Sirs,

Thank u very much for your timely clarifications.

AI Summary

Misallocation of GST payment into cess can impede refund; pursue cash ledger proof and administrative reallocation.
Wrong entry of tax payments under the cess head instead of CGST/SGST leaves the amount in the Balance of Cess column; the administration refuses refund absent a debit in the cash ledger. Advisers recommend seeking higher authority intervention, submitting the electronic cash ledger or hard-copy refund application with proof of payment, and relying on precedent or administrative adjustment mechanisms to obtain refund or reallocation of the wrongly deposited amount.