Refund of Excess Tax Paid

[Sangeetha D]

This person Received DRC - 07 Order on 25/02/2022 for Excess ITC Claimed for the tax period 2017-18. under Notices and Orders Coloum.

Subsequently the client paid the above demand through voluntary payment on 21/03/2023.

(Note. The above DRC-07 and voluntary payment made were not linked. So it shows outstanding even though the payment made through voluntary)

Again another DRC-07 issued on the same defect (Excess ITC for period 2017-18) on 31/12/2023.

Due to the Outstanding of the above 2 DRC-07, the bank account got freezed. The person paid the tax (only Tax amount, not Interest an Penalty) amount against the above 2 DRC-07 once again to unfreeze the bank account on 18/10/2024.

Now only we came to know that for 1 Defect, we have paid Thrice.

We check with the GST Department for Refund of excess tax paid. but they said the tax period should be with in 2years. Is there is any way to get Refund.

AI Summary

Taxpayer Challenges GST Department on Refund for Excess ITC; Two-Year Limit Disputed A taxpayer received multiple DRC-07 orders for excess ITC claimed in the 2017-18 tax period, leading to repeated payments and a frozen bank account. The taxpayer paid the tax amount three times and sought a refund for the excess payment. The GST department indicated a two-year limit for refund claims. A respondent clarified that the two-year period should be calculated from the date of excess payment. Another participant mentioned that once a tax liability is cleared, any excess payment is refundable, and the two-year restriction may not apply as the refund is not for tax but for excess payment.