While filing GSTR-3B for F.Y 2018-19, we have paid excess GST by utilising ITC only.
Now,
1. how can we adjust the same? or
2. If we are not able to adjust the same in subsequent return due to Nil turnover then how to adjust?
3. If we cannot adjust then how to claim refund?
Refund Adjustment for Excess GST via ITC for FY 2018-19: Apply Under Section 54(8)(e) CGST Act. A user inquired about adjusting excess GST paid through ITC for the financial year 2018-19, particularly when facing nil turnover and seeking a refund. The response advised applying for a refund under Section 54(8)(e) of the CGST Act, which allows re-credit to the Electronic Credit Ledger. It was noted that cash refunds are generally not permissible due to statutory requirements under Section 16(1) of the CGST Act, which mandates ITC utilization in business operations. Alternative methods based on case law could lead to litigation, with cash refunds rarely granted except in cases like factory closures. (AI Summary)
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