Clarification in respect of refund of tax specified in section 77(1) of the KGST Act and section 19(1) of the IGST Act.

Refund of wrongly paid GST allowed when supply is later reclassified, subject to payment under correct head and two year filing limit.

The term 'subsequently held' includes both taxpayer self reclassification and findings by tax officers or authorities; refunds are available if the taxpayer pays tax under the correct head and files the refund claim within two years from the date of payment under the correct head, with a transitional two year filing period for payments made before the notification. Refunds are not available where the liability was adjusted by issuance of a credit note.