Q. 361 Excess GST paid in GSTR 3B in comparison to GSTR 1 in FY 2021-22 and the same is not adjustessssd / set off till date in FY 2022-23 (no sales in FY 2022-23). Under which provision we can claim refund or whether assessee is eligible for set off of excess GST paid against future output liability? How to report in GSTR 9 for FY 21-22 ?

Ans. As per section 54 read with rule 89 of the CGST Act 2017, refunds of excess payment of tax may be filed through an application in Form GST RFD-01 electronically through GST portal before the expiry of two years from the relevant date. The details of the refund is to be provided in Part VI of Form GSTR-9.  

Q. 360 Sir, My Client(s) is engaged in provision of job work by way of washing of jeans supplied by his customers( trader). Please share your opinion on SAC and applicable GST rate on this job work service ?

Ans. In the above case, services by way of Job work in relation to textile and textile products are to be chargeable at the rate of 2.5% CGST & 2.5%SGST or 5% IGST. You may use SAC code no. 9988 for the above services supplied.

Q. 359 We have balance in credit ledger of Rs. 1.25 lacs in FY 2019-2020 and thereafter, we have filed all GSTR-3B and GSTR-1 returns as NIL upto October' 2022. Now we have received notice that you have claimed excess ITC in GSTR-3B by Rs. 1.06 lacs in FY 2019-2020. ( Note: Still we have balance of Rs. 1.25 lacs in credit ledger) .What are the consequences ?

Ans. In the above case, you are required to prepare a reply reflecting reconciliation of ITC claimed for the FY 2019-20. In case of excess availment and utilisation of ITC, ITC is required to be reversed along with interest as per section 50. The government authorities can raise demand against section 73 or 74 and levy penalties mentioned under section 122.