We are making payment of excess refund (Export-ITC) through DRC-03
Can we make payment without interest by debiting our credit ledger or we have to make payment only in cash ledger.
Please note that earlier we have received excess refund from SGST in our Bank Account.
Repayment of Excess SGST Refund Must Include Interest, Use Cash Ledger for Penalties per Section 41(2) CGST Act 2017. A query was raised about repaying an excess refund received from SGST using DRC-03 and whether it could be done without interest by debiting the credit ledger instead of the cash ledger. Responses indicated that while the tax amount can be debited from either the Electronic Credit Ledger or the Electronic Cash Ledger, interest and penalties must be paid using the cash ledger. Additionally, it was suggested to consider Section 41(2) of the CGST Act, 2017, and it was emphasized that since the refund was received in cash, government dues should be repaid in cash. (AI Summary)
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