Excess payment of tax

[Guest]

Dear sir,

We are engaged in software training services in karnataka and other 5 states(B to C). Earlier in July 2017 to Feb 2018. We has raised invoices from karnataka for other state also by mentioning Karnataka GSTIN no. Later in the month of March we realised that we should obtain Separate GSTIN No in all the states and we had filled the return for the respective state. Now we want to claim the refund which we have paid in karnataka for other states. So, my question is under which provision i can can claim the refund

[KASTURI SETHI]

If you have not passed on incidence of tax to your buyer/service recipient, you can apply refund claim under Section 54 (8)(e) of CGST Act. [FORM-GST-RFD-01[See rule 89(1)] Application for Refund

[Ganeshan Kalyani]

Otherwise the excess paid GST can be utilized against GST liability that may arise in coming months on outward supply in the state of Karnataka.

[KASTURI SETHI]

I agree with Sh.Ganeshan Kalyani Ji but claiming refund is safe, though cumbersome.

[Rajendra Prasad]

Dear Sir, Please clarify.

For 2017-18 FY I can not revise the invoice now. To claim the refund I should have the balance on my credit ledger. Then how can I apply the refund ?

I did not get how to get refund when balance is not there in my ECL ?

Thanking you

[KASTURI SETHI]

Q.For 2017-18 FY I can not revise the invoice now. To claim the refund I should have the balance on my credit ledger. Then how can I apply the refund ?

A. You are thinking wrongly. Why balance is required in ECL ? You have paid tax in excess and such payment might have been paid through Electronic Credit Ledger or Electronic Cash Ledger. If not collected from the buyer or returned to the buyer through Credit Notes, you can claim refund. I mean to say refund claim must not be hit by the principles of unjust enrichment. Balance in ECL is required only if you want to claim refund on the ground of accumulation of unutilized credit because of export or inverted duty structure.

In the situation explained by you, if you have paid GST in excess through ITC account, you will get refund by way of re-credit and if you have paid GST in cash, you will get refund in cash by way of electronic transfer to your bank account.

Only condition is that such claim is not hit by unjust enrichment.

AI Summary

Software Training Firm Seeks GST Refund Across States; Refund Possible Under Section 54(8)(e) If No Unjust Enrichment A business providing software training services across multiple states initially used a single GSTIN from Karnataka for invoicing. Upon realizing the need for separate GSTINs for each state, they sought to claim a refund for taxes paid in Karnataka for other states. Respondents advised that a refund could be claimed under Section 54(8)(e) of the CGST Act if the tax was not passed on to customers. Alternatively, excess GST could be used against future liabilities. Concerns were raised about invoice revision and credit ledger balance, with clarification that refunds are possible if unjust enrichment principles are not violated.