1% payment through Cash Ledger

[Rajesh Kumar]

A taxpayer did not pay 1%tax through cash. He paid 100% by ITC.

On being pointed out by department , he is ready to pay 1% by cash for earlier period.

What to do about 1% already paid by ITC ?

Because, it will be additional payment of 1% ?

AI Summary

Taxpayer Adjusts GST Payment Method, Seeks Refund for Overpaid ITC Under Section 54(8) CGST Act A taxpayer paid 100% of their Goods and Services Tax (GST) liability using Input Tax Credit (ITC) instead of the required 1% in cash. Upon being notified by the tax department, the taxpayer agreed to pay the 1% in cash for the earlier period. The primary concern is whether the 1% already paid via ITC can be adjusted. It was advised that after paying the 1% in cash, the taxpayer should apply for a refund of the excess ITC under Section 54(8) of the CGST Act. Some participants suggested alternative compliance methods to avoid refund complications.