EXCESS GST PAID IN GSTR-3B RECLAIM IN NEXT MONTH

[vinod jadhav]

Hello,

In November 2017, the Assessee mistakenly paid GST of Rs. 8,75,000/- instead of Rs. 87,500/-. The GST was initially paid from the utilization of ITC. The assessee re-claimed ITC of Rs. 787,500.

If a refund application were filed, would the department also credit the excess ITC back to the credit ledger only as it was paid trough ITC.

The adjustment of excess paid GST reclaimed against ITC is a revenue-neutral transaction, and there is no loss of revenue.

Now, the department has issued a Show Cause Notice (SCN) asking the assessee to pay the adjusted ITC of Rs. 787,000/-

Whethger adjustments be made without claiming a refund for the excess GST?

AI Summary

Excess GST reclaimed via ITC questioned; procedural rule allows subsequent-month adjustment or refund, reversal sought.
Taxpayer paid excess GST and reclaimed the surplus as Input Tax Credit in the next month's GSTR-3B; the department contends the correct procedure-per Circular-was to adjust in subsequent returns where feasible or claim a refund if not, and thus treats the ITC claim as inadmissible and seeks reversal. The matter raises issues of procedural compliance, portal reconciliation discrepancies, possible time limitation on adjustments, and potential leniency given early-GST implementation and corrected annual return disclosure.