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Erroneous amount transfer

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This query is : Resolved

Shalu (Querist)
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20 June 2019 Hi

I transferred a wrong amount (transferred in excess) to one of my client. He now is refusing to return back the money paid in excess quoting the GST complications.

Please advice if there is any GST complications for the amount transferred by mistake and on how much advance amount can GST be charged. Is there any limit to charge GST on advance payment?

Please advice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 June 2019 GST applicable on advance paid for services no limit. He can issue debit note and refund excess payment not a problem.

Shalu

Shalu (Querist)
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21 June 2019 Thanks you so much for the reply. We have not raised any invoice towards the excess payment. So GST compliance may not arise. Can this be treated as advance paid and the remaining amount to be refunded back.

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