Rule 86B - payment missed

[UDHAYKUMAR KANDASAMY]

Dear All,

One of my client has not paid 1% of Tax through Cash Ledger where he is liabile to pay through Cash ledger for the FY 2023-24. Tax amount is Rs.1.00 Lakh. His GSTR-9 was filed without adhering to the rule. Now he wants to pay along with interest however he would like to know once he pays the above amount through Cash Ledger, whether equivalent amount of tax he is paying through cash ledger can be recredited to his Credit Ledger since the payment now he is about to pay will lead to double taxation?

Please advice.

AI Summary

Rule 86B compliance requires payment through electronic cash ledger; excess ITC may be recredited via refund application, subject to timing.
Rule 86B obliges payment of a prescribed cash component of outward tax through the electronic cash ledger; if such cash payment follows utilisation of ITC, the taxpayer cannot self recredit but may apply for refund under "excess payment" to restore ITC to the electronic credit ledger. Wrong availment or utilisation of ITC attracts interest at the statutory rate. Refund claims for recredit are subject to the refund limitation period, and there is dispute whether the relevant date for limitation is the payment date or the date of GSTR 3B filing.