GST refund on incorrect tax payment (inter state transaction paid as intra state)

[Guest]

One of our clients have incorrectly considered an inter state transaction as intra state and paid CGST SGST instead of IGST. Later , upon finding the error we had paid IGST amount seperately in subsequent GSTR 3B. However , upon filing for refund of CGST and SGST paid ;the offline utility available in their login asks for Order date and Order number . We have not received any order .

How do we now apply for refund of the extra CGST and SGST paid( Kindly note we had already paid IGST in subsequent month)?

[Ranjith Reddy]

Dear James,

Can you please re check the offline utility available on the portal and see. Because i just downloaded the utility and the requirement of the order reference is not there. So please download a fresh offline utility and try.

[KASTURI SETHI]

Refund claim is admissible under Section 54(8)(d) of CGST Act read with Section 77ibid. Also comply with the condition of unjust enrichment laid down under Section 54(8)(e). You have option to file physical application for refund claim in terms of C.B.I. & C. Circular No. 79/53/2018-GST, dated 31-12-2018.

[Ganeshan Kalyani]

Don't you have any liability under CGST and SGST in subsequent months. You can offset the excess paid amount. One to one correlation of payment is not required. You can adjust that amount. Getting refund would take time looking into the number of refunds pending for disbursement from Govt side.

AI Summary

GST refund for incorrect intrastate classification may be claimed or excess tax can be adjusted in subsequent returns. Payment of CGST and SGST in respect of an inter-state supply, later corrected by payment of IGST, permits either a refund claim for the excess central and state tax or adjustment of the excess in subsequent returns. The refund path requires satisfaction of the unjust enrichment condition and adherence to refund procedures; a physical application may be filed under relevant circular guidance, while administrative utilities and processing times may vary.