Rule 86B - payment missed, Goods and Services Tax - GST

[UDHAYKUMAR KANDASAMY]

Dear All,

One of my client has not paid 1% of Tax through Cash Ledger where he is liabile to pay through Cash ledger for the FY 2023-24. Tax amount is Rs.1.00 Lakh. His GSTR-9 was filed without adhering to the rule. Now he wants to pay along with interest however he would like to know once he pays the above amount through Cash Ledger, whether equivalent amount of tax he is paying through cash ledger can be recredited to his Credit Ledger since the payment now he is about to pay will lead to double taxation?

Please advice.

Posts / Replies

[KASTURI SETHI]

In this situation, for re-credit of ITC in Electronic Credit Ledger, there is no time bar limit. See Rule 37 (4). The tax payer cannot take re-credit on his own. He will have to apply for refund as re-credit under the category of   "excess payment".

[Sadanand Bulbule]

Absolutely right Sir.

[Shilpi Jain]

Can pay the 1% amount by debiting elec cash ledger and take back the credit for the same amount.

[UDHAYKUMAR KANDASAMY]

Madam

After payment of taxes through cash ledger we have to take back credit as ITC in gstr 3b or to apply for refund to electronic credit ledger under the head excess payment of tax. 

Please clarify. 

[Yash Shah]

According to Rule 86B of the CGST Rules 2017, if taxable turnover other than exempt and zero-rated supply of a registered person exceeds 50 lacks in a month then 1% of his outward tax liability is required to paid through electronic cash ledger.

As per Section 50(3) read with rule 88B(3), in case of wrong availment or utilisation of ITC, the registered person shall pay interest on such wrong availment or utilisation of ITC at the rate of 24%.

According to section 54(8)(c), a person can apply for refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued.

In the given case, 1% of tax is required to be paid through electronic cash ledger along with interest and a refund application is required to be filed for a refund of 1% tax paid through credit ledger.