Refund Eligibility in Case of Subsequent Compliance with Rule 86B

[PRATIK BHIMANI]

One of the dealers did not comply with Rule 86B of the CGST Rules, which mandates payment of at least 1% of output tax liability in cash, at the time of filing GSTR-3B.

The entire liability was discharged through the Electronic Credit Ledger (ITC).

Subsequently, the dealer voluntarily paid the required 1% through the Electronic Cash Ledger to comply with Rule 86B.

The issue is whether the dealer can now claim a refund of the GST earlier paid through the Electronic Credit Ledger

AI Summary

Excess tax payment refund permitted where cash payment duplicates input credit under Rule 86B; seek refund or recredit.
A duplicate cash payment made to comply with Rule 86B after discharging liability through the Electronic Credit Ledger creates an excess tax payment refundable under the CGST statutory refund regime, subject to unjust enrichment principles; the practical remedy is a refund claim or administrative recredit filed in the prescribed form/category (Form GST RFD 01), supported by documentation and with attention to potential interest or penalty exposure.