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.

AI Summary

Excess ITC refund: repay via DRC-03 and notify authorities to limit interest and penalty exposure.
Repay any excess refund of unutilised input tax credit using DRC-03; interest may be charged from the refund sanction date until payment. Promptly inform the tax authority to mitigate penalty risk. Confirm whether the problem is an excess ITC claim or an excess refund received, the amount actually disbursed, and the dates of refund filing and receipt to enable correct adjustment and restoration of ITC for domestic supplies.