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Tax paid by our side and client also

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Parag Muthal

Salaried Employee

87 Points Posted on 16 March 2021

if there is provosion to refund tax paid by our side
we has been paid full gst amount against clients gstn, and clients paid same Ammount against rcm that means gst has been paid twice against same invoice.
so how can we refund our paid amount because client said they could not pay us because they also paid to gst

Replies (3)

Quick Summary

This discussion addresses a scenario where GST has been paid twice on the same invoice, once by your company and again by the client under Reverse Charge Mechanism (RCM). The core issue is how to refund the tax paid by your side when the client claims they cannot pay you back as they've already settled it with GST. Solutions proposed include verifying RCM applicability, issuing a credit note and fresh invoice (if vendor policy allows), and claiming a refund via RFD-01 for excess tax paid.

Akshay Lohani

24 Points Posted on 16 March 2021

U can check whether RCM is actually applicable or not on the same transaction, if RCM is applicable u can revise at your end else other party is wrong at their stance

Pankaj Rawat

GST Practitioner

29904 Points Posted on 17 March 2021

Issue credit note for the same subject to Section 34 of CGST Act . & issue the fresh tax invoice for the same (under RCM) & do report the same in your GStr 1 & 3B .

If you don't have enough liability to adjust the output for credit note issued for the period,then only you can claim refund for the same under *Excess payment of tax of any" by filing rfd01.

Parag Muthal

Salaried Employee

87 Points Posted on 18 March 2021

Dear all thanks for your valuable reply, thing but I could not issue fresh invoice because Invoice once provessed can not take back as per VENDOR policy of 2nd party, so we cant issue credit note to party. second party has been issued debit against GST