GSTR 7 and GSTR 8 QUERY

Any excess or erroneous amount deducted and paid to the government account shall be dealt for refund under section 54 of the CGST Act, 2017. However, if the deducted amount is already credited to the electronic cash ledger of the supplier(ie, supplier is filed TDS credit received statement "), the same shall not be refunded.
Query 1:- under which head this refund can apply?
Query 2:- based on the above fact instead of refund, deductor can adjust such excess or erroneous paid TDS against the subsequent month TDS liability if the supplier is not filed TDS credit received statement ?
Query 3:- Any excess or erroneous amount collected and paid to the government account by the e commerce operator then e commerce operator can apply for such erroneous or Excess paid rax as a refund? Under which head can apply for refund?
Query 4:- based on the query 3, instead of refund e commerce operator can adjust such excess or erroneous paid TCS against the subsequent month TCS liability if the supplier is not filed TCS credit received statement ?

Great set of questions! You're thinking correctly from a compliance and practical use-case point of view. Let's tackle each query in a structured way:

✅ Background Concepts:

Section 54 of CGST Act, 2017 governs refunds.
Once TDS (under GSTR-7) or TCS (under GSTR-8) is claimed by the deductee/supplier, the deductor or ECO cannot claim a refund.
But if not claimed by the supplier, the deductor/ECO can claim refund or adjust in future months.

🔹 Query 1:

Under which head can refund of erroneous/excess TDS deducted and paid be applied?

✅ Answer:

The deductor can apply for refund under Section 54 by filing Form GST RFD-01.

Head to choose in RFD-01:
→ "Excess payment of tax" or "Others" (depending on portal availability)

📝 Important:

This refund is only possible if the supplier has NOT claimed TDS in their electronic cash ledger (i.e., hasn't filed the TDS credit received statement).
Attach:
- GSTR-7
- Payment challan
- Explanation of error
- Declaration that deductee has not claimed TDS

🔹 Query 2:

Can deductor adjust excess TDS paid against subsequent month's liability if supplier hasn't claimed it yet?

✅ Answer:

Yes, adjustment is allowed.

If supplier has not filed TDS credit received statement, the deductor can adjust the excess TDS in the next GSTR-7 filing.
This is permissible under the principles of GST and general accounting — it’s a book adjustment as long as portal permits and records are maintained.

📌 Tip: Maintain an internal reconciliation register and evidence to avoid litigation.

🔹 Query 3:

Can E-commerce operator (ECO) apply for refund of excess/erroneous TCS paid? If yes, under which head?

✅ Answer:

Yes, an E-commerce operator can apply for refund using GST RFD-01 under Section 54, if the supplier has NOT claimed TCS in their electronic cash ledger.

Head to select in RFD-01:
→ "Excess payment of tax" or
→ "Others", with explanation of the mistake.

🔸 This is similar to TDS case. Once the TCS is claimed by the supplier, refund is not available to the ECO.

🔹 Query 4:

Can E-commerce operator adjust excess TCS paid in subsequent months, if supplier hasn’t claimed it yet?

✅ Answer:

Yes, the ECO can adjust the excess TCS in subsequent GSTR-8 filings, as long as:

The supplier has not claimed the excess TCS, and
Proper documentation and reconciliation are maintained.

The GST portal allows this auto-adjustment of excess TCS paid. No separate approval needed, just proper reporting.

✅ Summary Table:

Query No.	Scenario	Refund Allowed?	Adjustment Allowed?	Head in RFD-01
Q1	Excess TDS (supplier not claimed)	✅ Yes	✅ Yes	Excess payment of tax/Others
Q2	Adjust TDS in future months	❌ No refund	✅ Yes	Not applicable
Q3	Excess TCS (supplier not claimed)	✅ Yes	✅ Yes	Excess payment of tax/Others
Q4	Adjust TCS in future months	❌ No refund	✅ Yes	Not applicable