Availing of ITC

[KUMAR Narasimhan]

Dear Sir/Mam,

In the month of April 2021, the SEZ sales as happened and the tax has been paid for it. Then later Identified this sales pertains to Intra state sales then amendment has been made in May 2021. While doing the amendment, in GSTR-1 the SEZ tax amount got offset and changed as Intra state Tax, however it is not adjusted in GSTR-3B due to no SEZ sales in the month of May in subsequent month also don't have any SEZ sales (June).

Due to the above scenario, extra Tax on Amended Intra state Sales has been paid in the month of May 2021.

So my Question is should we need to wait till the SEZ sales to happen to adjust the difference amount of ₹ 23,940/- or directly we can adjust this tax amount in the June Month Interstate sales IGST Tax. Please clarify

[Shilpi Jain]

If it is going to take considerable time for you to have SEZ outward supplies in gstr3b, you can adjust your igst taxes with the igst paid for normal supplies in the next return itself. The SEZ turnover you can adjust whenever you get an SEZ turnover.

So by this you can adjust the excess taxes paid immediately. See if you can also make an intimation to dept in this regard.

[KASTURI SETHI]

SH. KUMAR Narasimhan Ji,

The following case law can help you:-

SAJI S. Versus COMMR. OF STATE GST, THIRUVANANTHAPURAM - 2018 (11) TMI 954 - KERALA HIGH COURT

In my view if you opt for adjustment, it will not be litigation-free.

[DeepakArya DGA]

I agree with the response of both the panelist.

Further In my humble view, you can also consider taking refund in this scenario based upon the quantum involved.

[KUMAR Narasimhan]

Dear Sir and Madam,

Thank you for your valuable Information

AI Summary

IGST adjustment: excess tax from amended SEZ-to-intrastate sales may be adjusted against IGST in the next return. A taxpayer amended SEZ sales to intrastate sales after tax payment, producing excess tax since GSTR 1 updated but GSTR 3B did not; practitioners advised adjusting the excess tax against IGST on subsequent interstate supplies in the next return, reconciling SEZ turnover when SEZ supplies arise, intimating the department, and considering a refund or noting possible litigation risk.