Mandatory tax 10% deposited debiting wrong heads while APL-1 filling

[BipadBhanjan dixit]

Dear Sir,

The assessee has filed appeal against the O-I-O of the Dy. Com. u/s 73 of the State GST in for short payment of tax under RCM basis say 10L. Upon filing appeal,the assessee has wrongly utilized electronic Credit ledger u/s 49(4) 50K each from sgst & cgst , instead of cash ledger u/s 49 (3) for making payment of mandatory disputed tax ( disputed tax is not a output tax) which was later on rectified by paying it again from cash ledger upon SCN issued by the appellate authority resulting double payment on account of Appeal.

Now, the amount once debited from credit ledger for above reasons are kept separately in assessee'a portal which requires to be re-credited in regular electronic credit ledger for utilising the credit further.

Please guide how the GST paid extra will transfer to electronic credit ledger? Which section /rile we will govern for this whole procedure?

[KASTURI SETHI]

See Rule 89(2)(k), (I) (m) of CGST Rules. Section 16 (2)(c) and Section 42(2) of CGST Act.

[BipadBhanjan dixit]

Sir, Should we file online refund in RFD-01u/s 89 claiming refund type as " excess refund" or "other refund" as it shows in drop down list in portal [OR] we should submit a normal letter for re-crediting the excess paid during the appeal .Please advise.

[KASTURI SETHI]

You should apply for refund online and the department will sanction refund claim by way of allowing re-credit. As per per prescribed Form GST RFD-01, you should tick mark serial no. 7 (k) -Excess payment of tax. If it does not appear in drop down, you may contact either jurisdictional Range Officer or helpdesk Common Portal System

[BipadBhanjan dixit]

Thank you sir for your valuable guidance . Regards,

AI Summary

Excess tax payment re credit restores electronic input tax credit after mistaken debit via an online refund application. When an assessee mistakenly debits the electronic credit ledger instead of the cash ledger to deposit disputed tax during appeal, the erroneously used credits are held separately in the portal and must be restored by filing an online refund application designated for excess tax payment; the department will sanction the claim and permit re crediting of the electronic credit ledger in accordance with input tax credit and refund/reconciliation rules.