Wrong input credit availed

[KrishnaKumar A]

Hi All,

One of my client availed CGST and SGST input credit instead of IGST credit during the FY 2017-18. This was found out during the finalization of GST audit. Is there anyway to regularise the same? My understanding is that the time period to avail IGST credit was 31st March 2019 for the FY 2017-18. Again the assessee has to reverse CGST and SGST credit while filing GSTR 9 for the FY 2017-18 and pay tax by way of DRC-3, am I correct? This will end up in loosing IGST credit. Is there a way to save this credit?

AI Summary

Client Erroneously Claimed CGST, SGST Credits; Must Reverse in GSTR 9, Refer to Sections 54(8) & 77 for Refunds A client mistakenly availed CGST and SGST input credit instead of IGST credit for FY 2017-18, discovered during the GST audit. The deadline for availing IGST credit was March 31, 2019. The client needs to reverse CGST and SGST credits in GSTR 9 and pay tax via DRC-3, potentially losing IGST credit. Responses suggest referring to Sections 54(8) and 77 of the CGST Act for possible refunds through the Electronic Credit Ledger, emphasizing that technical lapses should not result in loss of substantive rights. Relevant case laws were also discussed to support this position.