Gstr-7 gst payment issue

Hey Jatin, here’s a breakdown of your GST TCS payment issue and how it’s generally handled:

Situation Recap:

• TCS deducted: ₹5,600 (correctly generated challan for TCS amount)

• Vendor payment due: ₹2,80,000 (payment to vendor)

• Error: IFSC and account number interchanged while making payment via treasury.

• Effect: Vendor received ₹5,600 (TCS amount), but ₹2,80,000 not credited correctly.

• Pending: ₹2,80,000 payment with wrong bank details.

Key points and clarifications:

1. TCS Payment vs Vendor Payment:

   • The ₹5,600 is the TCS (tax collected at source) amount payable to government.

   • The ₹2,80,000 is the payment to the vendor, separate from TCS.

2. System behavior with CPIN amount mismatch:

   • The CPIN (Challan Payment Identification Number) is linked to the tax payment (₹5,600 TCS challan).

   • The treasury’s payment of ₹2,80,000 is a separate payment to vendor via bank transfer, not part of CPIN system for GST payments.

   • So CPIN will not accept or reject ₹2,80,000 payment, because CPIN is for tax challans only.

3. What happens with wrong IFSC/account number payment?

   • If payment to vendor was made to a wrong bank account, the money is likely held in a suspense account or bounced back after bank reconciliation.

   • The treasury or state government department should initiate a refund request from the bank or reverse the transaction once identified.

4. Will ₹2,80,000 be paid eventually?

   • Yes, once the error is identified and corrected, the payment will be made to the correct vendor account.

   • It’s important that the government department coordinates with treasury and bank to reverse/recall incorrect payment and make correct payment.

5. How to get refund?

   • Refund is handled via banking channels, not GST system.

   • The government department’s treasury will raise refund/reversal request with the bank to get ₹2,80,000 back from the wrong account, then pay to correct account.

What you should advise the department:

• Immediately inform the treasury and bank about the wrong IFSC and account payment.

• Request a reversal or refund of ₹2,80,000 from the wrong account.

• Make payment to the vendor’s correct bank details after refund.

• For TCS challan of ₹5,600, no issue as this was done correctly and reflected in GST portal.

• Keep proper documentation of refund/reversal process for audit and reconciliation.

Summary:

• The GST system accepts and reconciles ₹5,600 TCS payment (challan + CPIN).

• Vendor payment (₹2,80,000) via treasury is separate and needs banking correction.

• Treasury and department must coordinate with bank for refund of wrong payment.

• Once refund received, pay vendor correctly.