TMI BlogEXCESS GST PAID IN GSTR-3B RECLAIM IN NEXT MONTHX X X X Extracts X X X X X X X X Extracts X X X X ..... Hello, In November 2017, the Assessee mistakenly paid GST of Rs. 8,75,000/- instead of Rs. 87,500/-. The GST was initially paid from the utilization of ITC. The assessee re-claimed ITC of Rs. 787,500. If a refund application were filed, would the department also credit the excess ITC back to the credit ledger only as it was paid trough ITC. The adjustment of excess paid GST reclaimed against ITC is a revenue-neutral transaction, and there is no loss of revenue. Now, the department has issued a Show Cause Notice (SCN) asking the assessee to pay the adjusted ITC of Rs. 787,000/- Whethger adjustments be made without claiming a refund for the excess GST? - Reply By KASTURI SETHI - The Reply = (i) What is the date of reclaiming Rs.7,87,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- ? (ii) Yes (iii) Yes (iv) NO. Now adjustment is hit by time limitation. Also go through the replies of experts against Issue ID 118938 dated 15.1.24. - Reply By vinod jadhav - The Reply = (i) What is the date of reclaiming Rs.7,87,500/- ? ITC reclaimed in the next month i.e.December, 2017. - Reply By KASTURI SETHI - The Reply = Can you post the crucial para of the SCN here ? - Reply By Shilpi Jain - The Reply = This is a case of wrong disclosure made. As per the disclosure made by you, your liability and ITC both are inflated. So when excess tax cannot be collected without authority of law, the same was adjusted by taking back credit. Though the manner in which it was done was procedurally wrong, one could mention that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was during the early days of GST when there was lack of clarity. A lenient view should be taken However that will be only at tribunal or the court level. - Reply By KASTURI SETHI - The Reply = I am also of the same view as opined by Madam Shilpi Jain. Full and true facts have not been disclosed here. That is why I have asked for crucial part of SCN. One can expect lenient view. There is also a judgment to this effect. - Reply By KASTURI SETHI - The Reply = Dear Querist, Pl. note that the department never issues SCN without any basis . On file, the draft is approved by the higher authority and, thereafter, SCN is issued to the assessee. - Reply By KASTURI SETHI - The Reply = For lenient view, the querist c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an take shelter of the following judgement :- GST : Appellate Authority should have borne in mind predicament faced by taxpayers on introduction of new set of procedures by way of promulgation of GST enactments and time required to be taken to get acquainted ----- Orissa High Court in the case of Durga Raman Pathak - 2022 (10) TMI 676 - ORISSA HIGH COURT . - Reply By vinod jadhav - The Reply = Dear Kasturi Sethi Sir, Fact : In November 2017, the Assessee mistakenly paid GST of Rs. 8,75,000/- instead of Rs. 87,500/-. The assessee re-claimed ITC of Rs. 787,500 in December, 2017. Following is the SCN para for your reference. I have gone through the records submitted by tax payer, and thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough respective returns and find taxpayer version correct. In this regard, I hereby quote the Circular No. 26/20217 dated 29.12.2017 as 4. It is clarified that as return in FORM GSTR-3B do not contain provisions for reporting of differential figures for past month(s), the said figures may be reported on net basis alongwith the values for current month itself in appropriate tables i.e. Table No. 3.1, 3.2, 4 and 5, as the case may be. It may be noted that while making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B . The amount remaining for adjustment, if any, may be adjusted in the return(s) in FORM GSTR-3B of subsequent month(s) and, in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases where such adjustment is not feasible, refund may be claimed. Where adjustments have been made in FORM GSTR-3B of multiple months, corresponding adjustments in FORM GSTR-1 should also preferably be made in the corresponding months. However, In the instant case, tax payer further claimed the tax portion (paid in excess) during the month of December, 2017 to the tune of Rs. 7,87,500/- towards SGST as input tax credit in FORM GSTR-3B relating to particular months. However the subject circular clearly stipulates the way of dealing such scenario and in case adjustment is not possible refund can be claimed for the same. However, taxpayer claimed the ITC in respective FORM GSTR-3B without following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the due process, though they have option to claim the excess paid as refund. Therefore, in view of the above discussion and in the absence of any legal provisions expressly laid down, I find that tax payer is required to reverse /pay the ITC claimed to the tune of Rs. 7,87,500/- towards SGST. In the instant case Tax liability and ITC comparison data obtained from portal and it is found that there is a mismatch of total amount of Rs. 10,19,442/- (IGST- Rs. 12,875/-, CGST- Rs. 1,09,533/- SGST Rs. 8,97,833/-) against proposed demand of Rs. 15,57,293/-. I find that the SGST amount inclusive of ITC claimed to the tune of Rs. 7,87,500/- towards SGST, which is held as inadmissible in the above paragraph, is rightly adjudged. - Reply By KA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STURI SETHI - The Reply = It is the language of Adjudication Order. Isn't it ? When an Order-in-Original is passed, an SCN also becomes part of the order. Pl. confirm whether the Order has been passed. If so, what is the date of order ? If not, what is the date of SCN ? This issue has to be examined from so many angles. - Reply By Padmanathan Kollengode - The Reply = Has any correct disclosure made in GSTR-9 for 17-18? - Reply By vinod jadhav - The Reply = Yes sir, corrected figure shown in annual return. - EXCESS GST PAID IN GSTR-3B RECLAIM IN NEXT MONTH - Query Started By: - vinod jadhav Dated:- 24-1-2024 Last Replied Date:- 2-2-2024 Goods and Services Tax - GST - Got 11 Replies - GST - Discussion Forum - Knowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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