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Refund of IGST

V Hajib (Registered Insolvency Professional Registered Independent Director with MCA) (54 Points)

25 January 2020

If a Composition tax payer,pays IGST by mistake,how to get refund?

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17 Replies

Anup Agarwal (1184 Points)
Replied 25 January 2020

Pay CGST & SGST first and then claim refund

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V Hajib (Registered Insolvency Professional Registered Independent Director with MCA) (54 Points)
Replied 25 January 2020

Sir,

Thank you.

Have done that

% % composition levy had been paid and then refund applied for.

Now over 6 months refund not been received.

PrabuSubramanianThangavelpilai (CA Article Assistant) (132 Points)
Replied 25 January 2020

By submitting a Refund application form RFD 01.

Services > Refunds > Application for Refund > Refund of Excess balance in Electronic Cash Ledger.

Roshni (Studwnt) (1141 Points)
Replied 25 January 2020

Composition tax payer cannot pay igst at first place.

1 Like

PrabuSubramanianThangavelpilai (CA Article Assistant) (132 Points)
Replied 25 January 2020

Check the refund status, Any bank validation error occurred.

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PrabuSubramanianThangavelpilai (CA Article Assistant) (132 Points)
Replied 25 January 2020

Yes, composition taxpayer can't make any interstate supply. But the create challan makes available area for IGST payment.

So it may happen right, wrong details entered while challan creation.

2 Like

V Hajib (Registered Insolvency Professional Registered Independent Director with MCA) (54 Points)
Replied 25 January 2020

Status shown is RFD 05

Anup Agarwal (1184 Points)
Replied 25 January 2020

Ms. Roshni Composition dealer can also pay IGST in case of RCM

1 Like

Roshni (Studwnt) (1141 Points)
Replied 25 January 2020

Correct me if I m wrong...RCM doesn't mean we pay IGST

1 Like

Anup Agarwal (1184 Points)
Replied 25 January 2020

While uploading CMP-08 there is option to pay IGST

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V Hajib (Registered Insolvency Professional Registered Independent Director with MCA) (54 Points)
Replied 25 January 2020

Should I pay IGST interstate purchases attracting reverse charge?

IGST should not be paid by a composition dealer. The dealer is required to pay tax under reverse charge, import of service or purchase from an unregistered dealer has to pay only CGST and SGST.

https://cleartax.in/s/composition-scheme-under-gst

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 January 2020

@ Mr V Hajib.,

Yes... You are exactly correct...

Claim the wrongly paid IGST amount through refund application...

1 Like

Anup Agarwal (1184 Points)
Replied 25 January 2020

Mr. Hajib,

Portal is allowing to pay IGST under RCM in form GST-CMP-08.
Further There is nothing written in law that RCM can not be paid in IGST by composition dealer.

More ever Section 5(3) of IGST Act doesn't lay any restrictions of subjection for Composition dealer.

Further section 20 of IGST Act specifies that other provisions of CGST Act shall Mutatis Mutandis apply.

V Hajib (Registered Insolvency Professional Registered Independent Director with MCA) (54 Points)
Replied 30 January 2020

https://cleartax.in/s/composition-scheme-under-gst

5. Should I pay IGST interstate purchases attracting reverse charge?

IGST should not be paid by a composition dealer. The dealer is required to pay tax under reverse charge, import of service or purchase from an unregistered dealer has to pay only CGST and SGST.