REFUND OF EXCESS TAX PAID IN FY 2019-20

[Bipin Parmar]

Dear Experts,

The dealer issued bill in 2019-20 and paid tax on it but the buyer rejected the order. The supplier issued CN to adjust tax liability but could not adjust as negative figures were not acceptable in GSTR-3B and the dealer had less outward supply.

Is there any provision under GST Act to claim refund of excess tax paid in FY 2019-20?

Plese help

AI Summary

Dealer Can Claim Tax Refund for Rejected Order Using Section 54, CGST Act 2017, Despite GSTR-3B Issues A dealer faced an issue where a buyer rejected an order after a bill was issued and tax was paid in FY 2019-20. The supplier issued a credit note to adjust the tax liability, but could not adjust it in GSTR-3B due to negative figures and low outward supply. An expert advised that the dealer can claim a refund for the excess tax paid within two years from the payment date under Section 54 of the CGST Act, 2017, using Form GST RFD-01. Another participant noted that if the invoice and credit note were both dated June 2019, adjustments could have been simplified.