Excess Payment on RCM

• RCM excess tax paid = 5% of taxable value

• Options:

  1. Carry forward excess as input tax credit in future GSTR-3B

  2. Apply for refund via RFD-01

• Keep proper records for compliance.

If 2.5% CGST plus 2.5% SGST was the correct rate, the excess 2.5% under each head is generally not adjusted against future GST liability. Correct the liability and payment in the relevant March 2025 GSTR-3B records, where amendment is still procedurally available; if the return has already been filed, the portal generally does not permit revision of that GSTR-3B. Check whether the excess can be claimed as a refund under the applicable GST refund provisions, subject to eligibility, limitation and unjust-enrichment requirements. Also verify whether the excess RCM was claimed as ITC; any excess credit should be reversed, and eligible ITC should be limited to the correct tax paid.

The correction workflow should reconcile the invoice, applicable rate, GSTR-3B liability and cash ledger before deciding the route. Manual GST rectifications are difficult, and automation can reduce repetitive checks while keeping professional judgment in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For help streamlining these reconciliations, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1