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How to claim refund of excess balance in electronic cash ledger?

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 transfer the money back to their bank accounts. Also the step by step guide to claim such refund has been given to help our readers.

Previously, there was no option to alter the returns at GSTN Network. 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 be transferred directly to the bank account of the particular taxpayer.

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, 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.

Follow the below mentioned simple steps to claim the Refund of Excess Balance in Electronic Cash Ledger:-

  1. Login on GST portal
  2. Go to services
  3. Click on Refund
  4. Click on Application for Refund
  5. Select the Refund type as Refund of Excess Balance in Electronic Cash Ledger
  6. Click on CREATE button

This is the screenshot of how it appears on the GSTN Portal.

refund-of-excess-balance-in-electronic-ledger

44 thoughts on “How to claim refund of excess balance in electronic cash ledger?”

  1. No sir, it is not working. it is repeatedly flashing the message “system error” and unable to file the refund claim. It is stopping at the ” save” stage. pl help

  2. What it is time limit of getting the refund. I applied on 30/11/2017 but till date i.e. 08/12/2017 not received it

  3. We have also not recd applied on 07/12/2017 but till date i.e. 11/01/2018 refund not received. can any one give the helpdesk numebr

  4. GST Helpline say to visit Sales TAX Office of your zone with Refund ARN letter genrtated and get approval from some sales tax offers. So that claim can be credited in our account.
    What kind of Digitalization is this?????????
    GST is again taking taxpayer to offices for manual processes…………..not expected from GST………….

    • Even that does not work. I tried. It seems the state govt is yet to get the circular on how to process the refund. Also gst office have no idea

    • Agree with you.
      Is this real Digitization ?
      I have paid Wrong Challan Paid Cess Instead of SGST.
      cant set off with other heads & now need to fill online form then need to take all necessary document to zonal office ( Typical Govt Attitude of Employee )
      Need to be adjust cash ledger amounts with any head IGST/CGST/SGST/CESS/Int/Fees etc.
      Very hectic work to get refund.
      Just one mistake & you are finish

  5. JOINT COMM. AND ASST. COMM. EZRA STREET CHARGE,KOLKATA ASKING FOR 1.DECLARATION FORM 2.UNDERTAKING IN STAMP PAPER 3.GSTR-1 AND GSTR-3B 4.SUMMARY OF CASH LEDGER 5. PROCESSED ARN RECEIPT FOR REFUND FROM EXCESS CASH LEDGER FOR GIVING CREDIT IN BANK ACCOUNT
    GOI IS VIOLATING CONSTITUNAL RIGHT AND MAKING “UNJUST ENRICHMENT” BY WITHHOLDING REFUND BY EITHER NOT CREDITING IN BANK THE REFUND OF EXCESS CASH LEDGER BALANCE OF THE ASSESSEE OR NOT PAYING ‘INTEREST’

    • There is a whole list of documents required by mumbai commissionerate too even for refund of excess cash in vash register.. for such cases after filing RFD1A online there should be no requirement to go to gst officer… List of documents for excess cash refund include rfd1a printout plus refund acknowledgement plus gstr3b plus excess paid challan copy plus correct paid challan copy plus cancelled cheque plus UNDERTAKING…. HORRIBLE PROCEDURE..
      Entire purpose of online application is defeated…**sigh**

  6. The whole system of electronic fund return is not useful if one has to run to the gst offices. GST helpline says to contact your local jurisdiction officer with relevant details

  7. HOW MANY DAYS THE REFUND IS IN THE BANK ACCOUNT. I SUBMITTED APPLICATION ON “08 JANUARY 2018” AMOUNT DEBITED FROM EC LEDGER SAME TIME BUT STILL NOT GET IN BANK ACCOUNT.

  8. ALTHOUGH ARN NO. HAS BEEN GENERATED ON 30/11/2017 FOR REFUND OF EXCESS AMOUNT LYING IN ELECTRONIC CASH LEDGER THE AMOUNT HAS NOT YET BEEN CREDITED IN MY CURRENT ACCOUNT.
    I REQUEST THE GST COUNCIL TO FIND A SOLUTION AT THE EARLIEST FOR REFUND

  9. Electronic cash ledger amount is undisputed money that is credited to ecash ledger. Hence no such documents should ask by department. It is not tax refund, it is cash refund credited in ledger.

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