Gst paid twice same party

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This query is : Resolved

BHARTI R CHUADHARI (Querist)

03 February 2021 one flat booking
amt received on march with gst
after same time July we again paid same gst amt same party double entry done
the amt paid twice
then what happened in gst
the amount refund back or what

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

07 July 2024 If an amount with GST was paid twice to the same party for a flat booking, here’s what typically happens in GST:

1. **Identify the Double Payment**: First, ensure that it is clearly established that the GST amount was indeed paid twice for the same transaction or invoice. This might involve reconciling your records and confirming with the supplier.

2. **Rectification**: Once identified, the next step is to rectify the error. This usually involves contacting the supplier (the party who received the GST payment) and requesting a refund of the excess amount paid.

3. **Refund Process**:
- **Supplier’s Responsibility**: The supplier should initiate the refund process for the excess GST amount received. They need to issue a refund voucher or credit note for the excess GST amount paid.
- **Claiming Refund**: As the recipient, you would adjust this excess amount in your books of accounts. You might also need to revise your GST returns to reflect the correct amount of GST paid and adjust any input tax credit accordingly.

4. **Reconciliation and Documentation**: Ensure that proper documentation is maintained throughout this process. This includes copies of refund vouchers, credit notes, and any correspondence related to the refund.

**GST Returns Adjustment**: Depending on the timing of the refund, you may need to adjust your GST returns. Any excess GST paid can be adjusted against future liabilities or claimed as a refund if eligible.

**Communication**: It’s essential to maintain clear communication with the supplier throughout the refund process to ensure timely resolution.

In summary, if you’ve paid GST twice for the same flat booking, you can seek a refund of the excess amount from the supplier. The supplier needs to issue a refund and adjust their records accordingly. You, as the recipient, should adjust your records and GST returns accordingly to reflect the corrected amount of GST paid. Always ensure compliance with GST rules and maintain proper documentation throughout the process.

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