Section 36(2) in The Gujarat Value Added Tax Act, 2003
(2)Where any refund is due to any dealer, according to the return furnished by him for any period, such refund may provisionally be adjusted by him against the tax due and payable as per the returns furnished under section 29 for any subsequent period in the year :Provided that the amount of tax, or penalty, interest or surety forfeited or all or any of them due, from and payable by the dealer on the date of such adjustment, shall first be deducted from such refund before making the adjustment.
