Inadmissible IGST credit due to wrong mentioning of state

[G GOSWAMI]

Our customer of Haryana has GST Registration with state code of Haryana . But during invoice the state of our customer mentioned as Delhi instead of Hariyana in July 2017 ( but the registration No. of the customer with Haryana state code mentioned) and submitted the GSTR 3B and GSTR 1 accordingly. The customer has informed that when they have filed GSTR 2 the IGST credit is showing inadmissible and they have alleged that they could not able to take credit. Under the circumstances the wise forum are requested to kindly opine how the mistake could be rectified and the customer could take IGST credit.

Regards,

G.Goswami

Kolkata

21.11.2017

[ANITA BHADRA]

Customer can claim for refund of IGST but he need to pay correct CGST and SGST . It can not be adjusted :-

when a taxable person pays IGST on an intra-state supply transaction which he has mistakenly treated as an inter-state supply. Ideally, for an intra-state supply, the tax collected should be CGST/SGST instead of IGST.

To rectify the situation, the person concerned will have to pay CGST/SGST and get the refund of the amount paid as IGST.

[Nash Industries I Pvt Ltd]

Two options -

Option -1 ask the customer to rectify in GSTR-2/2A and then accept the changes in GSTR1A.

Option -2. Issue Credit Note for the former and Issue a new invoice

Regards

S.Ramaswamy

[Ganeshan Kalyani]

Recipient can upload purchases in GSTR 2A which will autopopulate to you in GSTR 1A. You can accept the same.

[G GOSWAMI]

Thanks a lot for your wise opinion in the matter. Regards, G. Goswami.

AI Summary

Mistaken State Entry on Invoice Leads to IGST Credit Issue; Options Include Refund Claim and Corrective Filings. A customer in Haryana mistakenly recorded their state as Delhi on an invoice, resulting in the IGST credit being deemed inadmissible when they filed GSTR 2. To rectify this, suggestions include claiming a refund for the IGST and paying the correct CGST and SGST, correcting the error in GSTR-2/2A and GSTR1A, or issuing a credit note and a new invoice. These measures aim to correct the intra-state supply tax treatment error and enable the customer to claim the appropriate tax credit.