Overpaid GST: Rectification or Refund? Understanding When to Adjust and When to Claim Refund

• Rectification under Section 39(9) is allowed only for reporting errors in GST returns (e.g., wrong figures, double payment, or tax not actually collected from customers), and must be done by 30 November of the next financial year.
• Refund under Section 54 is required if excess tax was actually collected from customers, as adjustment is not allowed due to unjust enrichment concerns.
• Only reporting errors can be rectified in GSTR-3B; excess tax collected from customers must go through the refund process via RFD-01 within 2 years from the date of payment.
• CBIC and legal framework clarify that adjustment is for return errors, while refund is for actual excess tax collected.

Source: gstlearn.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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