WRONG GST PAID

[RAHUL GAIKWAD]

Our Taxable Supply was Inter State but We paid CGST & SGST in FY 17-18. Now we realise that the Supply was Inter state and we were to Pay IGST. ( Same Vendor have Reg in Maharashtra and Goa)

Now amendment also not possible due to Tab for FY 17-18 is not available.

What do to in this case.?

Our Vendor Demands for IGST Credit but we paid IGST.

What is solution.?

[KASTURI SETHI]

You will have to pay IGST first and thereafter apply for refund of CGST and SGST under Section 54 (8) (d) read with Section 77 of CGST Act. Interest is not chargeable as per Section 77 (2) of CGST Act.

Payment of Wrong Tax

Under GST it might happen that the taxable person may pay integrated tax instead of central tax plus state tax and vice versa because of incorrect application of the place of supply provisions. In such cases, while making the appropriate payment of tax, interest will not be charged and the refund claim of the wrong tax paid earlier will be entertained without subjecting it to the provision of unjust enrichment.

Relevant date for applying for refund within two years.

Explanation below sub-section 14

(h) in any other case, the date of payment of tax.

There is no other option.

[RAHUL GAIKWAD]

It means I have to Pay IGST.?

We can not adjust already paid Tax.?

[KASTURI SETHI]

Case laws are available but that is a matter of litigation. See my reply against Issue ID No.115288 dated 6.8.19. There is also a judgement of Gujarat Hight Court which has held that last date for availing ITC for 17-18 is 31.8.19 as GSTR 3 B is not a return.

No person likes rigours of litigation.

[RAHUL GAIKWAD]

Please give Case Law Ref.

[KASTURI SETHI]

If you are a subscriber to TMI, you can trace out case law easily by clicking on either on icon/heading Highlights or News.

[RAHUL GAIKWAD]

Ok thanks sir

[KASTURI SETHI]

Dear Rahul Gaikwad Ji,

The case law was not handy with me. Had the case law been handy, I would have shared with you in this forum. I believe in, "Knowledge is power, if shared'. If knowledge is not shared, it may become outdated tomorrow. Still I receive so many calls pertaining to Central Excise & Service Tax and I do not hide or hesitate. It gives me immense pleasure to share any type of information with any person may be party or professional. Every information is not always ready. There is no gap between my word and deed. I hope you understand me very well.

[RAHUL GAIKWAD]

Yes sir....

[Hasmukh Patel]

GIREESH BABU ALAMBADAN VERSUS THE STATE TAX OFFICER, STATE GST DEPARTMENT, COMMISSIONER OF STATE GST, DEPARTMENT OF STATE GST, THIRUVANANTHAPURAM AND UNION OF INDIA, REPRESENTED BY SECRETARY, NEW DELHI [2019 (5) TMI 1009 - KERALA HIGH COURT]

AI Summary

Wrong tax payment remedy: pay IGST then claim refund of wrongly paid central and state tax without interest.
Discharge the correctly due integrated tax and thereafter apply for refund of the central and state tax paid in error under the refund provisions read with the recovery provisions; interest is not chargeable on the corrective payment and the refund claim period runs from the date of payment as the relevant starting point.