Tax wrongly paid as SGST, CGST instead of IGST to be reallocated, refund u/s 77 allowed

HC quashed the impugned orders arising from the petitioner's erroneous deposit of tax under SGST and CGST instead of IGST. It directed the tax authorities to reconsider the matter afresh by properly accounting for the amounts already deposited under SGST and CGST and transferring them to the IGST head as warranted. The HC further directed that, upon such reconsideration, any refund found due to the petitioner shall be released forthwith in accordance with Section 77 of the GST Act. The writ petition was accordingly disposed of.

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Writ petition under Article 226 challenged: (i) order under Section 73 read with Section 61 of the GST Act revising tax liability for 2017-18; (ii) appellate order rejecting appeal for non-deposit of disputed tax; and (iii) DRC-07 order under Section 73(3) fixing tax liability. Petitioner contended that tax actually payable as IGST was "mistakenly" deposited under CGST and SGST, that this error was brought to the notice of both the original and appellate authorities, and that, if CGST/SGST payments are properly reckoned, tax stands paid in excess, entitling the petitioner to refund. Reliance was placed on the Kerala High Court decision in Saji S v. Commissioner, State GST Department. Respondents accepted that tax appears to have been paid under the wrong head but argued absence of a mechanism to transfer CGST/SGST to IGST. The Court quashed the impugned orders and directed reconsideration "afresh taking into account the tax deposited in SGST and CGST into the head of IGST," with any refund to be paid "immediately as per Section 77 of the GST Act."

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