Refund in wrong order

[KARAN VERMA]

Sir, as per circular no. 125/44/2019-GST, refund to be claimed firstly under IGST, then equally under CGST and SGST to the extent of balance available.

Now, i haved filed my application in 2021 and claim full refund of ₹ 20 lakhs under SGST head only, even though balances stand under CGST and IGST head.

Whether officer can charge any interest and penalty at the time of departmental audit?

[Shilpi Jain]

If the time limit is still available you can take back this application and file new application

[Shilpi Jain]

Even if this is wrong it is revenue neutral as far as you are concerned since you have not got any extra benefit from the department and thereby interest and penalty should not be liable

AI Summary

Refund allocation order: misallocation under SGST can be rectified and is revenue neutral, so interest or penalty unlikely.
Refund allocation must follow the priority of IGST first, then CGST and SGST equally. A taxpayer who incorrectly claimed the entire refund under SGST may withdraw and refile the application if time permits. If the misallocation did not confer any extra benefit and the aggregate refund amount is unchanged, the error is revenue neutral and ordinarily will not attract interest or penalty on departmental audit.