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

Refund of IGST credit available to rectify wrong input classification and restore credit via Electronic Credit Ledger.
Recipient wrongly availed CGST and SGST instead of IGST; remedy is to reverse the CGST/SGST credits in returns and pursue refund of the IGST amount into the Electronic Credit Ledger under the statutory refund provision Section 54(8)(e), noting that Section 77 chiefly governs supplier refunds and that authorities and case law treat such classification errors as technical, not extinguishing substantive credit rights.