EXCESS ITC REFUND CLAIMED

[SURYAKANT MITHBAVKAR]

We have taken refund of Unutlised ITC (Zero Rated) (Direct Export) in the month of April-2018.

While calculating ITC claim by oversight we have claimed excess of ₹ 878219/- and same has been allowed by GST department after keeping 10% amount to be sanctioned later.

Now when we apply for 10% refund we have noticed that we have claimed excess amount.

Whether department is charged interest on the same since they have issued refund against our ITC.

If we paid amount whether department will release our ITC so we can avail ITC against our Domestic supply.

[Mahadev R]

In total, if there is any excess refund claimed, then pay it back through DRC-03. Interest may be demanded from date of sanction of refund till date of payment. It is better to bring it to notice of department at the earliest so that there would be no penalty demanded.

[Ganeshan Kalyani]

I agree with Sri Mahadev Ji, on the point that upfront intimation of such fact need to be reported to the authority.

[DR.MARIAPPAN GOVINDARAJAN]

Better you may inform the department and pay the excess amount of refund got by you.

[KASTURI SETHI]

I agree with the views of the experts.

[Nandan Khambete]

Excess ITC of ₹ 8,78,219 is claimed or excess refund of ₹ 8,78,219/- is claimed ?

If ₹ 8,78,219 is excess refund claimed, how much out of if is actually received in 90% refund sanctioned and received ?

Whether Refund is filed "in" April 2018 or "for" April 2018 ? If later , when have you filed refund and when have you received RFD 02 and RFD 04 ?

AI Summary

Company Overclaims Refund on Unutilized ITC for Exports, Advised to Repay Excess via DRC-03 to Avoid Penalties A company claimed an excess refund of 878,219 for unutilized Input Tax Credit (ITC) related to zero-rated direct exports in April 2018, which was initially approved by the GST department with 10% withheld for future sanction. Upon applying for the remaining 10%, the company realized the overclaim. Experts advised repaying the excess through DRC-03 and notifying the department promptly to avoid penalties. Interest may be charged from the refund sanction date until repayment. Clarifications were sought regarding the exact amount received and the timing of the refund application and receipt.