Author Posts

September 12, 2019 at 6:09 pm

Dear Sir,

How get refund Excess unused amount in Credit Ledger. We are paying tax

in every month for SGST.

Kindly explain how get refund.

Thanking You.

K. Sivaprakasam,

Mobile:93607 95152

September 18, 2019 at 1:06 pm

Hello Mr.Sivaprakasam,

As per the refund provisions given in Section 54(3), Refund can only be claimed if it is a zero rated supplies made without payment of tax or ITC is accumulated because of GST rate on inputs being higher than output GST (inverted duty structure)

In your case, it doesn’t seems so due to the higher liability of SGST as you had mentioned.

So, refund cannot be claimed and transferring it to cash ledger is possible only on payment of tax

One suggestion can be, as per Rule 88A of the CGST rules, 2017 – utilise IGST credit for payment of IGST liability first and utilise the balance if any towards payment of SGST alone.

So that, your SGST liability would reduce and CGST payments can be made out of CGST credit available.

Thank you

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