TaxTMI 
TaxTMI 
In FY 17-18 taxable person has wrongly claimed IGST ITC ₹ 1,000/- in GSTR 3B instead of CGST ITC ₹ 500/- and SGST ITC ₹ 500/-. Whether wrongly claimed IGST ITC ₹ 1,000/- is to be paid through DRC 03 and actual CGST ITC ₹ 500/- and SGST ₹ 500/- not claimed in GSTR 3B will be lapsed? Any remedy.
Claimed IGST ITC instead of CGST and SGST
26 Feb 2020 
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Input tax credit misclassification: reverse wrongly claimed IGST via DRC 03, then re avail CGST and SGST.
A taxable person who availed IGST ITC instead of CGST and SGST should reverse the erroneously availed IGST by payment through the appropriate adjustment form and thereafter re avail the correct CGST and SGST credits; this correction is treated as a procedural recredit and not barred by time limitation. The situation is generally revenue neutral if corrected, but use of wrongly availed IGST to discharge CGST/SGST or conduct suggesting mala fide intent can attract interest and penalties and complicate remedy options such as refund. (AI Summary)
A taxable person who availed IGST ITC instead of CGST and SGST should reverse the erroneously availed IGST by payment through the appropriate adjustment form and thereafter re avail the correct CGST and SGST credits; this correction is treated as a procedural recredit and not barred by time limitation. The situation is generally revenue neutral if corrected, but use of wrongly availed IGST to discharge CGST/SGST or conduct suggesting mala fide intent can attract interest and penalties and complicate remedy options such as refund. (AI Summary)