Tax paid in wrong head and adjusted

[Prabu SubramanianThangavelpillai]

During FY 17-18

1. While filing GSTR-3B tax amount of IGST entered in CESS by mistake.

2. In ITC also the Input of IGST entered in cess and adjusted in tax payment.

3. Excess tax amount than available IGST input paid in cash in CESS head and adjusted.

What can be done now while filing Annual return and Audit?

i) Whether the IGST tax has to be paid in cash ledger with interest for delayed payment.

ii) If paid whether refund option for mistakenly paid amount is available.

iii) Or what else should be done for the above case?

[Ganeshan Kalyani]

Sir, please elaborate point no. 3 of your query.

[Prabu SubramanianThangavelpillai]

For tax payable in CESS adjusted with available ITC in CESS where both are mistakenly entered in cess instead of IGST, after exhausting the input in cess excess amount required for adjusting tax payable paid through cash in CESS and adjusted for filing.

AI Summary

Tax reclassification error: IGST and ITC recorded under cess, raising questions on payment, interest, and refund remedies. During the year the taxpayer entered IGST tax and matching ITC under the CESS head in GSTR-3B; after exhausting that ITC, additional tax was paid in cash under the CESS ledger and adjusted. The taxpayer asks whether IGST must be paid from the cash ledger with interest, whether a refund for the mistaken CESS payment is available, or what corrective steps should be taken for annual return and audit. A respondent requested further details, and the taxpayer confirmed the misclassification of both liability and ITC to CESS followed by a cash payment to CESS.