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.
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. (AI Summary)
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