Excess Refund Received paid through Cash Ledger.

[umeshkumar jhawar]

Dear Experts

For March 2022, we have received Refund but later on as per Internal Audit of Depatment , Refund is being reduced that too due to Mistake of Deparment . Now concern officer is asking to Pay excess refund received from Cash Ledger.

Here PMT-03 (Undertaking for Accepting Refund Order under RFD-06 and to recredit the balance amount denied as per RFD-06) for March 2022 was already filed and Refund denied recredited to our Credit Ledger.

Here If We will pay Excess Refund received from Cash Ledger then How we can reclaim amount of ITC already debited to our Credit Ledger at the time of Refund Application?

Ex. Originally we have Claime Refund of Rs. 1,00,000.00 for March 2022 refund received Rs. 90,000.00 and Rs. 10,000.00 recredited to our Credit Ledger.

After Department's Internal Audit finding Final Refund reduced to Rs. 85,000.00 hence officer is asking to pay Rs. 5,000.00 along with Interest from Cash Ledger,

Here How We can reclaim Rs. 5000.00 to our Credit Ledger?

[Shilpi Jain]

Was an order issued to this effect?

There is a form which has to be filed by department to get this re-credited. You may consider taking an order and writing to them to that effect.

[Shilpi Jain]

THis is the provision in rule 93

Any amount claimed as refund is rejected under rule 92, either fully or partly, the amount debited, to the extent of rejection, shall be re-credited to the electronic credit ledger by an order made in FORM GST PMT-03.

AI Summary

Refund recredit procedure: use FORM GST PMT-03 to recredit audit-rejected refund amounts once a departmental order is issued. Excess refund amounts reduced on departmental review shall be recredited to the electronic credit ledger only by an order directing recrediting and by filing FORM GST PMT-03; absent that order, payment from the cash ledger does not itself restore the amount to the credit ledger, and parties should seek the formal order to effect recrediting and address any interest or compliance obligations.