GST Refund on account of Advance Refund Voucher

[Ashiesh Prremji]

Dear Experts,

I had paid GST on advance in Nov 19 which were partially paid by credit note issued in that month. Later, Invoice against that advance not issued & we finally refunded amount in April 20 through Refund Voucher.

Suppose, B2B GST = 100/-, GST on Advance = 300, GST on CN = 250. We paid GST in 3B = 150. Now, as per circular No. 137_7_2020 if i file RFD-01 for ₹ 300/- under category 'Excess payment of tax', it's showing error that Refund claimed can not be greater than what GST paid in 3B i.e ₹ 150.

First, please suggest how to resolve this query ? Second, is there an option to file RFD-01 under category 'Any Other (Specify)' ?

Thank You,

[Ashiesh Prremji]

seeking solution of this query.....I think this error will come while filing refund of unadjusted gst on credit note also. As in 3B of that month net payment will be zero. If anyone has filed Refund of Unadjusted GST of Credit note, please guide me.

Thanks,

[Ashiesh Prremji]

In continuity of above query, Whether to file RFD-01 under category 'Excess payment of Tax' we need to file application for two months i.e One for Nov 19 for ₹ 150/- & Second of ₹ 150/-(Credit Note) for that month (Here it's Sep 19) in which gst paid for B2B Invoices against which credit note issued in Nov. 19.

Please clarify....

[Shilpi Jain]

You could consider filing refund under any other category,. however also be aware of the the time limit for claiming this refund

[Ashiesh Prremji]

Thanks for Reply Ma'am!

If i opt for 'any category', should i change the category which i have written in Application (Cover Letter) & Declarations that As per Circular 137 we are filing RFD-01 in category Excess payment of Tax or keep it remain unchanged?

[Shilpi Jain]

In your covering letter also you can mention the reason why you opted for other category. so change the category in the covering letter as well.

[KASTURI SETHI]

Sh. Ashiesh Prremji Ji,

Received your personal message. Your message deleted abruptly due to mistake. I prepared your reply but it could not be posted because meanwhile Madam Shilpa Jain posted reply. My reply is the same. So no need of repetition.

[Ashiesh Prremji]

Thanks a lot to both of you to clear my doubts.

AI Summary

GST refund on advance: portal rejects claims exceeding reported tax; file by period or use 'any other' with explanation.
Refunds of tax paid on advances can be rejected by the portal where the claimed refund exceeds tax shown as paid in the relevant GSTR-3B; practitioners should either align refund claims to the tax periods in which payment was reflected (potentially filing separate RFD-01s) or file under 'Any Other (Specify)' with an explanatory covering letter and amended declarations, while observing statutory time limits.