Question 5 - Suppose a taxable person has paid IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 14 Refunds
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No adjustment between IGST and CGST/SGST; taxpayer must pay correct tax and claim refund instead. Cross-head adjustment between IGST and CGST/SGST is not permitted when a supply's nature is clarified; the taxpayer must pay the appropriate tax under the correct head and claim refund of the tax wrongly paid through the statutory refund mechanism.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
No adjustment between IGST and CGST/SGST; taxpayer must pay correct tax and claim refund instead.
Cross-head adjustment between IGST and CGST/SGST is not permitted when a supply's nature is clarified; the taxpayer must pay the appropriate tax under the correct head and claim refund of the tax wrongly paid through the statutory refund mechanism.
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