GST - RECREDIT IN ELECTRONIC CREDIT LEDGER

[SAFETAB LIFESCIENCE]

Dear Experts,

Hope you are all safe and doing well. Please stay safe.

We have received an excess refund of GST from Department erroneously by cash when we applied under refund under inverted duty structure category. Some ineligible amount was also included by mistake and Department has also refunded.

We ourself found the mistakes and voluntarily repaid the amount with applicable interest by cash in Electronic Cash Ledger with applicable interest and debited the same through DRC-03.

Now we have to get the amount to be re credited in our Electronic Credit Ledger. We are eligible to get it credited in Credit Ledger as at the time of submission of original refund application the entire amount applied was debited from Credit Ledger and then we received by cash directly in to bank. But as we have erroneously received some excess amount, we have paid in by Cash in Cash Ledger and debited through DRC-03. Technically the amount is with the department now but it is to be re-credited in our Electornic Credit Ledger.

What is the procedure ? Shall we give simply one letter to Department for information and take credit by our own in GSTR-3B ? (or) Shall we submit a fresh refund application under 'other' category and request the department to recredit into our Credit Ledger. We came to know that there is no specific concrete proceedure with Department for this type of receipt in cash by department and to give recredit in Tax payer's Credit Ledger through PMT-03.

PLEASE GUIDE US.

[KASTURI SETHI]

You have to apply for refund claim afresh. You cannot take re-credit on your own even.

[Ganeshan Kalyani]

Yes, Sir apply for refund. In my view, you should also inform the fact to jurisdictional authority.

AI Summary

Re-credit to Electronic Credit Ledger requires a fresh refund claim; taxpayers cannot self-credit and must notify authorities. Taxpayer who repaid an erroneously received excess GST amount with interest into the Electronic Cash Ledger via DRC-03 cannot self-credit that sum to the Electronic Credit Ledger. The correct procedure is to file a fresh refund claim requesting re-credit to the Electronic Credit Ledger and notify the jurisdictional authority of the repayment and re-credit request.