In case a service provider has made excess Payment of Service Tax to the Central Govt. than what was required to be paid, there are 2 options available to the assessee:-

  1. Self-Adjustment of Excess Service Tax Paid against his future tax liability
  2. Claim Service Tax Refund in Cash (applicable only where Self Adjustment is not possible)

Self-Adjustment of Excess Payment of Service Tax

In case excess service tax has been paid that what was due to be submitted, the Assessee has the option of adjusting such excess paid by him against his future tax liability.

However, Self-Adjustment of Excess Payment of Service Tax is only possible if the following conditions are satisfied:-

  1. The Excess Payment has not been made on account of Interpretation of Law, Taxability, Classification or Valuation of any Exemption Notification
  2. In case an Asseessee having Central Registration has paid Excess Service Tax because of Delayed Receipt of the details of Payment, such excess can be adjusted without limit
  3. In cases other than specified above – the maximum amount of service tax that can be adjusted is Rs. 1,00,000 Lakh for a relevant month or quarter
  4. While claiming such adjustments, the details shall be intimated to the Superintendent within 15 days from the date of such adjustment

Service Tax Refund

In case of excess payment of Service Tax where Self-Adjustment is not permissible, service tax refund claim has to be filed with the Department. The Service Tax Refund claims have to be made in accordance with Section 11B of the Central Excise Act 1944 which have also been made applicable to service tax  vide section 83 of the Act.

Procedure for Service Tax Refund

For claiming Self Adjustment for Excess Service Tax Paid, the Service Provider shall comply with the following:-

  1. The Application shall be filed in the prescribed format
  2. The Application shall be filed before the expiry of the limitation period of 1 year from the date of payment of Tax
  3. The Application for Refund shall be accompanied by a documentary evidence that the Excess Service Tax paid has actually been borne by the Service Provider himself and has not been passed on to any other person (Doctrine of Unjust Enrichment)

How to apply for Service Tax Refund Online

To apply for Service Tax Refund Online, follow the following procedure:-

  • Login to your Service Tax Account on
  • After logging in to your account click – Ref>Refund Request>Create
  • A Form for filing Service Tax Refund would open as shown in the screenshot below


  • Furnish all the details in the above form and once you’ve furnished all the details, click on the submit button to submit your Request.
  • On successful submission of your Request for Service Tax Refund, a Refund Request Number would be generated which can be relied upon for Future Reference

The Department will review your Request for Refund of Service Tax and if your Refund Request is found justified and there is a delay of processing of Service Tax Refund Request for more than 3 Months from the date of receipt of application, Simple Interest @ 6% would be payable by the Govt. on delayed payment