Businesses have been protesting ever since the implementation of the new indirect tax reform i.e. GST. Due to the uncertainty in new tax reform, many traders had paid wrong tax amounts by mistake. This article talks about the new facility has been started by the government on its GSTN portal, under which the taxpayers who paid excess tax money by mistake, can now how to transfer cash ledger balance to bank account. But how to transfer electronic cash ledger balance in GST? Here's the step by step guide to claim such refund has been given to help our readers and even how to transfer cash ledger balance in GST to bank account.
Previously, there was no option to alter the returns at GSTN Network. So how to claim refund of cash ledger balance under GST? Now, the government says that if any of the traders had paid an extra amount of tax by mistake while filing returns, the money will be returned to them. This facility has started online from 29th November. With just one click, the money will transfer of cash ledger balance from one GSTIN to another or directly transferred to the bank account of the particular taxpayer.
If you are thinking how to transfer cash ledger balance in GST, let's see to get back their excess tax money, businesses will be required to log on to GSTN portal by using their GSTN registered numbers and then they can apply for returning of the excess money. The money will automatically be credited to the concerned bank account.
The refund application on the GSTN Portal is available for Refund of Excess Balance in Electronic Cash Ledger. So, If you wrongly paid GST amount under wrong head or by any other manner and you think how to withdraw ledger balance, there was no possibility earlier under GST to set off or refund that amount.
For example, Tax paid under interest head or interest paid under fees or penalty head or paid SGST amount wrongly under the head of CGST but now you can make an application for refund of excess balance shown in electronic cash ledger, and after that make another challan for right payment. But there's no time limit for refund of excess balance in electronic cash ledger.
Follow the below mentioned simple steps on how to refund electronic cash ledger in GST :-
This is the screenshot of how it appears on the GSTN Portal.