Claim of ITC-CGST/SGST instead of IGST

[ROHIT GOEL]

In FY 2017-18, Supplier A based in Haryana received goods from Delhi on which IGST was charged. However, by mistake, accountant punched credit as SGST and CGST in GSTR-3B and credit was adjusted in same month with outward liability.

The error remained undetected while filing GSTR-9 and was only detected after GST Deptt has issued SCN due to mismatch of ITC in GSTR-3B and GSTR-2A.

What are the recourse available to assessee now as same was only an inadvertent error and no loss to revenue was caused as in FY 2017-18 inter-head adjustment was allowed freely without restrictions and therefore even if ITC was taken currently as IGST, then also it would have been adjusted against monthly output liability in same manner.

I am aware that there is existing law as well as Court decisions which allow assessee to take refund of wrongly paid tax and pay the correct tax however there is no such provision or judgment regarding incorrect claim of ITC under wrong head. Kindly provide your views.

AI Summary

Supplier Mistakenly Claimed ITC Under Wrong Tax Heads; Calls for Condonation Due to No Revenue Loss A supplier in Haryana mistakenly claimed ITC as SGST and CGST instead of IGST in their GSTR-3B for FY 2017-18, which went unnoticed until a notice was issued due to mismatched ITC. The forum discusses potential remedies, noting that while tax paid under the wrong head can be refunded, no specific provisions exist for incorrect ITC claims. Contributors argue that since no revenue loss occurred and taxes were correctly paid, the error should not be penalized. They highlight the absence of mechanisms for revising returns and suggest that such errors should be condoned, especially given the initial years of GST implementation.