1% payment through Cash Ledger, Goods and Services Tax - GST

[Rajesh Kumar]

A taxpayer did not pay 1%tax through cash. He paid 100% by ITC.

On being pointed out by department , he is ready to pay 1% by cash for earlier period.

What to do about 1% already paid by ITC ?

Because, it will be additional payment of 1% ?

Posts / Replies

[KASTURI SETHI]

Re-credit will be allowed.

[KASTURI SETHI]

After payment of 1 % in cash, you should apply for refund claim of 1 % of ITC on the ground of paid in excess under Section 54 (8) of CGST Act and do not take on your own.

Such re-credit is permissible.

[Shilpi Jain]

Is it possible that you pay the 1percent of previous month's liability on cash in this month 3B by short utilising the ITC?.

Something like a cumulative compliance? This will avoid refund trouble

[Shilpi Jain]

One more stand is there is no provision in the law for restriction of utilisation of credit. This has been proposed only now. So no requirement to pay

[NARENDER YARRAGORLA]

Please read Rule 86(b), there some exceptions are there eg if u paid income tax more than ₹ 1.00 lakh for last two preceding Financial years

[Ganeshan Kalyani]

I agree with the view of Sri Kasturi Sir.